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yes, part of the update process is basically a master reset. as long as you have backups of the .cab files for your apps, and your contacts and such you should be ok.
Not only will it fix your rebooting problems, I found my phone ran better and faster after this upgrade. I have had no reboots and battery life seems improved.
Yes, yes, yes, I get it. Most all of my stuff is on my mini sd card, anyway.
Looking at it now, it was a foolish question. I just thought, with the referneces to "third party" stuff, that it might be more of a disclaimer than a warning.