Would you guys recommend a clean install, or is an upgrade fine?
Depends. How good do you "take care of your hard drive"? Removing old apps, files and preference files?
Quite regularly. I just did a Time Machine backup... will that pretty much restore everything I need after a clean install?
All I'm really concerned about is my photos, music, and documents.
Ok I'm in disk utility after booting the DVD.. I guess I want Mac OS Extended (Journaled) when I erase, right?