how to update-grub if /boot is in separate partition

Hi!
I wanted to confirm if I will have a problem or not when I use update-grub. It seems that the gutsy edition of U.St. handles my /boot appropriately in its separate boot partition, but the GrubHowTo doc. advises creating a sym.link for /boot to itself:
 cd /boot
sudo ln -s . boot
but it mentions that this link now creates a problem when trying to mv or cp files into grub afterwards (such as bootsplash images). Speaking of bootsplash images, the same HowTo suggests using update-grub for a more convenient install of the image in the right location. I will try to avoid using it for now (I managed to use GUI version so far) but I did want to learn to use the command line more without butchering my grub or any other vitals.
So to use update-grub specifically to install a bootsplash image is creating the /boot sym.link to itself a necessary step?

Also, MOST IMPORTANT, when official automatic updates and version upgrades occur that affect grub or grub/menu.lst, do they update the right list (as in my separate /boot partition)?