The OTA in 1.1 is the original OTA that hit when the phone was launched. It's safe, won't kill root.
Use 1.6.1 though, it's built in. Though there's a missing gallery and this force closes the camera. Small bug, fyi.
But, yes. I now realize jwm2's advice is a little more sound than mine hehe. Probably all roms from now on won't have the need for the OTA.