Upgrading WordPress 2.7 in 3 Simple Steps
With the release of WordPress 2.7, one of the features was the built in auto update functionality. Since WordPress 2.7.1 was just released, I put it to the test and it was extremely easy.
1 – Backup your blog database. The WordPress Database Backup plugin is the best way to do this. http://wordpress.org/extend/plugins/wp-db-backup/
2. Login to the WordPress admin and click the “Please update now.” link.
3. Click the “Upgrade Automatically” button.
WordPress will then do it’s thing and you’ll be done in seconds!
Depending on your install, you may be asked for the FTP password or could possibly even be told you can’t use the auto update. Different hosts allow different scripts like this to run.
Since updating is so quick and painless, you may want to take the time to check your blog plugins for updates or write another post. 
This upgrade feature is actually great, otherwise it used to take ages to upload all the new files. For backing up I mostly use the export feature of WordPress that generates an XML file and saves it locally on your computer.
Thanks for the write on Word Press. I just did a search and it came up. It makes it so much easier when someone else reads the instructions.