If you mean the actual OS Updates, yes it is safe, and it is possible. It is actually very easy too. I, however, like to leave them in case I ever need to revert to them. If you still want to proceed, they are in
Macintosh HD>Users>YourNameHere>Library>iTunes>iPod Software Updates.
Since 2.0.2 is the latest, do not delete the file iPod1,1_2.0.2_5C1_Restore.ipsw, or you will have to re-download it to restore your iPod.