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Do we need to back up all of our stuff on the Droid first before updating?

This is the official release from Verizon/Motorola/Google applied with the official code put on your phone by V/M/G. What's to fear?I like my Droid and hope to have it for some time so I'll just patiently await the OTA.
can anyone give confirmation that it's working?
Help i do evething and reboot and it say 2.1 update 1... what happend?
Did you still have the 2.1 update.zip file in your root? You might have applied that instead.