Thanks for your answers, I really appreciate it

Apologies if I am being a bit slow understanding this, but I am still not quite clear...
You do need a factory reset after froyo updated..... if you want your galaxy s to work correctly.
I have known factory resets that remove everything except firmware, and others that leave data (& sometimes apps) in memory, due to different types of ROM/RAM in different embedded devices.
I also contacted Samsung about the GPS issue and was advised to reset the phone, but they suggested the apps/data would be unaffected (not that I trust technical support to actually know what they are talking about).
Hence I still don't know whether the froyo update (and necessary factory reset) will remove all my apps.
And yes....reinstalling apps would be a pain.
Would be, or WILL be?
Backing up under eclair is perfectly fine, and that's what you should do....
Does the backup process backup apps as well as data? How do I perform this backup?
and, some but not all apps are compatible with froyo.
Any way of knowing in advance what is likely to stop working?
Are you sure it's Froyo? I got an eclair update. It erased everything. I've hear that the Froyo upgrade does not.
I have heard this as well, perhaps it depends if you are installing the official update or a leaked/cooked ROM?
I just want to know about the official froyo at this stage. Is there anyone who has done it who can describe the entire process and confirm yes or no?
The good thing is if you *have * to reinstall stuff, it's tracked in Market so it's not too bad unless you have hundreds of apps as some people seem to

What about apps not installed via Market? ie .apk's transferred from PC, or via the browser?
I have been using my SGS for development work as well, so I have apps pushed through 'adb'. What happens to these?
Thanks in advance...