Best way to upgrade to new iOS 4?

I have read some people say the best way up upgrade to iOS 4 is to start fresh and set up as a new phone, then sync content back from iTunes. I have also heard other people say to do a backup of the phone, upgrade, then restore from backup.
So far today I've heard of LOTS of people having problems with the new OS, and some people say they need to set up the phone as new to avoid having problems. But then what about all your data like text messages, contacts, etc? I do not use MS Outlook at home so I don't really have anything to sync my contacts to, other than just doing the normal backup.
How can I be assured that I can upgrade my 16GB 3GS from 3.1.3 to 4.0 and not have tons of problems?

I don't know if you can.
I updated itunes and then synced mine this morning (UK time) downloaded it as soon as it came out (6pm UK time) and I've not had a problem.

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