I'm currently running windows 7 on my 27" iMac, now that bootcamp has been updated do I need to do a clean install or is it fine to just update over the top?
According to the new Apple Windows 7 faq, you're good to go for just updating...
Check out Apple's new Windows 7 faq for answers:
http://support.apple.com/kb/HT3986
see below....
How do I install Windows 7?
First, use Software Update to ensure your computer's Mac OS X operating system, Boot ROM, other firmware and software are up-to-date before installing Windows 7.
You'll need both your Mac OS X v10.6 installation and Windows 7 installation discs. Here is the general process:
1. Install Windows 7 using the Boot Camp Setup Assistant (located in /Applications/Utilities), which partitions your hard drive and walks you through the installation process. The process differs depending on whether you are performing a new install of Windows 7 or an upgrade install from an earlier version of Windows (see Boot Camp Installation & Setup Guide for more information).
2. After completing the Windows 7 installation, install the Apple Boot Camp Windows drivers from your Mac OS X v10.6 (or later) Install DVD.
3. Upgrade the drivers to Version 3.1 with Windows Apple Software Update, or manually download them from here.