I'm in Edmonton, Alberta and updated to the Telus 2.2 two nights ago. I just tested my FM Radio after reading this post and it works fine for me. I'm able to get all the local radio stations.
Did you do a Factory Reset after updating to the 2.2? I had to do one because my Market wasn't opening after I'd updated. Perhaps this is a similar issue as the FM radio not working properly.

 

It doesn't take that long honestly. All your contacts get saved in your gmail (check to be sure) then really it's just a matter of downloading your apps and moving your widgets around.

There is an app called MyBackup (it's free for 30 days) that (you guessed it) backs up everything and saves it in the sd card. Then once you do the reset redownload the app again and use the "restore" feature to put everything back. It doesn't do apps, but it will do everything else.