Yes, you do need the stock apps to perform the OTA update. I had to do a full backup (used BootStrapper to create a Recovery Image then rebooted into recovery mode to do a backup). Then I backed up my apps and data with Titanium Pro. After that I had to unroot and flash back to the stock Froyo 2.2 firmware for my Droid 2. I used RSDLite to flash the new SBF file to my phone. I was able to find an SBF with the new 2.3 system firmware which is what the new OTA was for. Flashed that puppy to my phone, re-rooted with SuperOneClick and voila!
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