I'm still using Atahualpa 3.3.2. Should I update to WP 3.0 or try and upgrade the theme first. I'm not technically savvy and don't want to mess things up. Any advice or pointing me to proper threads that I've missed would be very much appreciated.

I you use the manual update to Atahualpa as explained elsewhere on this forum you can always go back to the version you have if there is an issue. What I would do in your situation is.

• Backup your site files and database
• Upload the atahualpa351 folder to the wp-content/themes folder (don't activate yet)
• Apply bug fixes to the indicated files per the New Versions and Updating forum
• Copy any images you uploaded from the current Atahualpa images, header, and favicon folders to the new atahualpa351 images, header, and favicon folders.
• Activate the theme and take a look. If not working switch back to your previous version and troubleshoot.
• Once the new theme is activated make any path changes for background images, etc. in the Atahualpa Theme Options.
• If all looks good update all plugins and then update WordPress

This is a lot easier to do than it looks but I have done quite a few so who am I to speak. So take it slow, read the updating forum as referenced above, don't click before you thinks and ask any questions you have during the process. It's a great learning process.