If anyone hasn't seen it, there's a movie out call Indie Game The Movie that follows some indie game developers in their game making process. Fez is one of the games featured in the movie. It's a good watch I'd say.
I would think that most people have at least 2 hardrives on their xbox (unless someone just stuck with a 4GB one) so I would think just copying the save file over before updating would be sufficient protection, right?