QUOTE(Ranger72 @ Dec 18 2006, 11:31 PM)

You can't run backups on the PS3 and probably wont be able for a year or so. Go ahead and update the PS3.
You CAN however, back them up. From the PS3scene archives.
LinkDecide for yourself if you want to update. I doubt they've snuck in any security fixes. But anyways:
QUOTE(http://www.us.playstation.com/ps3/network/updates)
The PLAYSTATION®3 system software version 1.31 update includes the following:
* Settings
o You can now register the BD remote control in [Register Bluetooth® Device] under [Accessory Settings].
o [BD/DVD Video Output Format (HDMI)] has been added as an option under [BD/DVD Settings].
o [Backup Utility] has been added as a feature under [System Settings].
o You can now select the hard disk format method in [Format Utility] and [Restore PS3 System] under [System Settings].
o The method of selecting output resolution has been changed in [Video Output Settings] under [Display Settings].
* Game
o New for 1.31: You can now play PlayStation®2 format software titles that must be installed on the hard disk.
* Other
o The compatibility of USB devices with PlayStation®2 format software titles has changed. For details on USB devices that can be used with system software version 1.30, select here.
o New for 1.31: Playability status with the PS3 system has changed for some PlayStation® and PlayStation®2 format titles. To check on the latest status, visit the search site for compatible titles.