Preserve XBMC Settings

Can I just copy the Preferences folder “/private/var/mobile/Library/Preferences/XBMC” over to my Mac using FTP, then jailbreak to the new version, install XBMC again (know I have to manually delete the application before installing the nightly), and then just copy that folder back over?

Does anyone know if this creates permission problems?

Yes, you should be able to drag and drop these back and forth without issue.

Some fancy backup options will be available in an upcoming version.