Definitely perform a Time Machine backup before you install Lion. Firstly as a safety measure, and secondly because you may not like Lion - it's been a very contentious update, and you may want to change back to SL until a few issues are sorted. I installed Lion on my iMac and my MacBook Pro, then reverted back to SL on both as I found it to be very dumbed-down for an Apple product and I absolutely hate the autosave function. Of course that is only my opinion, but I would suggest you should have a contingency plan in case you don't get on with Lion.