Total Posts: 460
Just a couple of words of warning (from my own experiences!).
1) The backup in Magento doesnt really work. I’d suggest you backup the database and take off a copy of any themes/media directories you have created.
2) Looking at your site it doesn’t look like you are too far down the line with customising the theme. I’d recommend you don’t use the update facility as it is plagued with problems, and actually install a new version from scratch. There are various ways of doing this, but if you install over the top of your existing database you will find your products are kept in place - then it’s simply a case of copying back in the media files. If you go the upgrade route you might find it painful.
BTW: This problem with upgrading is really only an issue with 0.x to 1.1+ versions, I haven’t seen it so much with the new releases (e.g. 1.4 to 1.6).