It doesn't update my unit, so I haven't tried it.
Places to read user comments:
Apple releases iPod update with maximum volume limit
Bug fixes apparently include "It fixes the video bug and fixes the (even more annoying, for me) ratings screen bug, on the 60gig model."
Someone else noted "Alas, holding the MENU button doesn’t activate the backlight any longer. Instead, it returns the user to the Main Menu whatever point you’re at.", so that's the same as it was in the last update.
A second list of comments:
iPod Updater 2006-03-23 Released - Mac Forums
, but I got bored and stopped reading. Even though it is "MacRumors", they usually have the best user reporting on updates.