Hi aaron, yes that´s right. Every new version is basically a complete, self contained software. It can be installed just like the first version, or also the original Behringer firmware. You can go straight to version 1.04.
Your presets should all not be touched at all and should be safe, but I recommend, at least to record them as Midi to have some form of backup before updating.
Starting of version 1.03 you can export them via SysEx.
I have never heard of problems with the presets due to updating before though.