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I would create a backup first, but you don't need to format like Hellhammer suggest's with the clean install.

Just insert the disk, and click next/continue/agree/install (whatever it may say) through the Snow leopard install screen and select the drive. It'll upgrade to snow leopard and keep all the files.
 
I'd do a clean install if I were you. Updates to Snow Leopard have always been dodgy for me, whereas the clean install has resulted in no problems.
 
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