Just so you know, I updated today manually without unrooting my phone. When I got the message for the OTA update, I chose to update my phone. It restarted and I got an error saying that the update was aborted. What I did to get around this was I went to the thread on hear on how to force the update. I downloaded the update to my phone and renamed it update.zip per the instructions. I used Astro to move it to the root of my sdcard. Then I restarted my phone and held x to get to the screen where I chose to update. The first time I hit did it, it aborted again. I then clicked on the allow update.zip and nothing happened. I then clicked on the update again and it went through perfectly. No issues, lost root, but have all of the new fancy 2.1 stuff. Hope that helps. It can definitely be done without resetting everything.
Josh