Lately, upgrading unlocked iPhones firmware is not such a big deal as it used to be (thanks to iPhoneDevTeam)… I have upgraded my unlocked 2G iPhone (Yes I know how all you 3G/3GS owners feel… don’t get me started on that)… I just followed this iClarified link and all it took me was 20 minutes of time… (that too because of all the backups that I need to take)
To take backup of your iPhone…
Contacts : Use iTunes
SMS : Copy the sms.db in /private/var/mobile/Library/SMS to local and restore it back after upgrade*
Notes : Copy the notes.db in /private/var/mobile/Library/Notes to local and restore it back after upgrade*
* You should have installed OpenSSH in your iPhone through Cydia to remote login from a PC and copy these files