What will happen when I get the Lion OS, should I backup?

Maybe this is an obvious question but I didn't know how to look for it...
I was wondering, if when I upgraded my OSX to the new Lion, should I back up my data (I have a Time Machine) or should I clear the space from the Time Machine linked to my laptop so that the "new" user may use up that space? In any case what should I do and how can I restore my data to my upgraded MacBook.
Cheers!

Yes, back everything up. When Lion comes out, just download it from the App Store and install it right over your current system.   
17" 2.2GHz i7 Quad-Core MacBook Pro  8G RAM  750G HD + OCZ Vertex 3 SSD Boot HD 
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