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I would update it personally - there are a couple nice new features like the ability to remove a book from the I'm Reading list and the Go To page function. Some books don't have chapters (particularly the free ones included - try opening the Art of War) so if you open it and decide you don't like it, the only way to close it in the earlier version is to page through every page.
I haven't had any issues since the update (so far) whereas I did have problems with it prior to the update.
By the way, you can check your version by looking under Settings - General on the device.
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