I managed to keep my root by:
1. Get Voodoo Rootkeeper from the market and run it.
2. Remove forever root by replacing the backup for the mount_ext3.sh using root explorer.
3. Run the update.
4. Run voodoo root keeper and restore your root.
Thus far it all seems to work just fine. Titanium backup is running great, and root checker verified I had root. I guess my step one should be run a full backup in titanium backup, just in case.
I am by no means an android expert, but this worked for me.
I only have one question, should I reedit the mount_etx3.sh file to restore my forever root? I refroze my updater so that I wouldn't accidentally apply an update without knowing it.