I NEED to upgrade to iOS5 and I need instructions?

So basically I bought my iPhone at the end of 2010 or the beginning of 2011 and I haven't updated it since. I have been wanting to, but I'm worried I'll mess it up somehow and just lose everything. I called Apple about 6 months ago and asked them how to do it and they sent me a few links. One about backing up, one about transferring purchases to a computer and one about updating. So do I need to do all 3 of those things? And there was also one about uploading your pictures from the camera to a PC. But wouldn't the backup just cover that for me?

So basically, I've been putting it off for ages, and now I'm finding that I can't download some apps because my software is too old (I mean really old, I haven't updated at all).So can someone please just give me simple instructions that I can follow in order to update without losing anything. All the links confuse me.

If you haven't already you need iTunes on your PC, then basically you plug your iPhone up to your PC and follow the instructions, it will transfer purchases, backup, check software update and do it all for you, with prompts. You will be surprised how easy it is once you have completed it. I understand your trepidation with this, but do not fear you can always restore your phone if something does happen.