the only thing updating the theme may do is loose the header images, logo image and favicon IF you stored them in the Atahualpa theme folder.
As of release 3.7.12, you can store them in a seperate folder in wp-content and not worry about loosing them again.
BUT as always, before you do an update DO A COMPLETE BACKUP - i.e. backup your database and your 'wp-content' folder and your 'wp-config.php' file - there are several plugins that can automate this. I use a paid plugin 'BackupBuddy' for teh sites I deal with.
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Juggledad | Forum Moderator/Support
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