LG Phoenix owners over on AT&T will be happy to know they can finally upgrade their devices from Android 2.2 (Froyo) to 2.3 (Gingerbread). The update is available now, but isn't going to be pushed over the air. You'll need to navigate here to install the LG United Mobile Driver to a Windows PC to go through with it.
It isn't available on Mac OS X yet, so you might have to bug your neighbor to borrow his Windows tower for a second. There are a few preparations you should go through prior to upgrading to Gingerbread. First, you'll want to make sure your battery is fully charged up. Personally, I always have my device plugged into the outlet during software updates. Next, backup your data!
Contacts will likely be backed up to your Google account, but make sure they aren't saved to the phone just in case. Once your done dragging all the files you want to keep to your PC, take your phone out of "Mass storage only" mode. Navigate through Application > Settings > SD card & phone storage to do this. Don't disconnect the USB cable once the update starts! That's all, easy enough right? Let us know if you run into any problems! We'll give you some pointers if so.