There are multiple articles on the web that explain the steps you need to take for a clean install. First one I found:
http://eggfreckles.net/notes/installing-mountain-lion-clean/ As for "updating in steps": no, it would most likely make no difference. Since you're updating to a major version and things did change quite a bit since Snow Leopard, it could easily happen that system configs get messed up ( old ones are not properly replaced with new ones, or are not fully removed, etc. etc. ). Again, ideally, you'd just back-up your most important files and do a clean install of Mountain Lion... that way, if you ever notice anything wrong with your system, you'll know for sure it has nothing to do with the upgrade and possibly messed up old configs. That's what I'd do at least...
PS: Just to make sure you are aware of the system requirements for Mountain Lion:
http://support.apple.com/kb/HT5444