I'm sorry but I'd have to disagree with the above poster, I've updated several times and have recently tested outlook synchronisation.
I would take a belt and braces approach, firstly back up all your contacts to your memory card.
Open contacts, then select options and scroll down to Mark/Unmark then select Mark All. (All contacts are ticked)
Then select options again and copy, then To memory card.
It then copies the contacts to a contacts folder in a folder called "other" on the memory card. There may be a contacts folder on the root of the card but it will be empty.
It uses the vcf format which can be read by windows and outlook but this is where the issue arises and why you should not use outlook.
Sometimes if you use outlook you may lose whole contacts or even certain info or numbers within a given contact. For example if you have a contact with a 1st and last name they are treat differently via the nokia software and windows/outlook I have found. But also say a contact has 3 associated numbers which is not unusual Home, mobile & work. You may find that Outlook can only see 2 of them. It gets worse if you enter numbers on both phone and app. As far as i can gather its related to the description associated with the number and also if the same description is used twice within a contact.
I discovered when transferring contacts to a friends N95 and had to use outlook. And found certain vcfs read in the phone with say 3 numbers but in outlook/windows with 2 and the nokia software with 2 (but a different 2 than the outlook view). When the file was saved with the nokia sw and sent to the phone the 3 numbers remained though with outlook or via windows only 2.
On that basis i would avoid it as a backup solution of choice.
Once you have backed up your contacts to the MC, back up the phone settings, though it's not a good idea to use these to restore from as you are upgrading firmware. You should only restore contacts and calendar. To do this go to the utilities folder then memory select options and back up phone memory. If you are repairing say flashing firmware at the same level then I guess it would be ok to use them. But i tried this once and it was supposed to retore the calendar and didn't.
I would make a full back up of your memory card on your PC too (external to the phone). Make sure that your memory card doesn't have password protection on it either as the PC wont see it. And make sure the memory card is removed (safely-via remove MC option) before updating with a fully charged battery (and connected to mains-just in case).
I would also use the nokia software to back up contacts and calendar and other settings onto the PC before updating. Though as said before after an update only restore the contacts and calendar. Restoring settings can corrupt the phone as they may not be cpmpatible with the newer firmware. You will have to reinstall any apps you had on too of course.
Once updated you can either restore your contacts from the nokia pc suite or the memory card. The calendar only from the nokia software.
Hope this advice helps.
:tongue: