The advise given now is great but I would like to add something to it.
There have been stalling issues when running the update which you should be aware of.
The following are 2 links from Microsoft:http://social.answer...e5-dc128cc5f86chttp://support.micro....com/kb/975253/
I would advise you follow the steps under the Solutions tab on the second link to be sure of a smooth install. Also like has been said removing the display driver is a good way to go as there have been conflicts issues with later version of some ATI cards.
A good way to go would be to remove the ATI driver and then start the upgrade i.e make it the last thing you do. Likely if you were to remove it and go back then you will be left with a display problem.
Apart from that it should be fine. Also Internet Explorer is pre installed so that 1 less thing to worry about.