I can attest to that. I couldn't get hibernation working in 1.08 until I did that, it worked fine in 1.07. I actually did reset and restore from a file first, which didn't work, obviously it's just an image snapshot.
IMO, this is also a significant problem with this unit. New and expanded parameters should be added in unused space so that existing parameters don't have to be moved. If you have a lot of shares and FTP accounts, it takes quite a bit of time to manually configure them all again. I've designed many embedded applications, and this was always a primary design goal. When you update firmware, you shouldn't have to knock everything flat and start over.