No not necessarily, you may not need to blacklist.
If you keep it straightforward, the prop drivers will override the nouveau, like ryanvade said.
update and upgrade are 2 different things.
Are you using Ultimate Edition 3.4 or Ultimate Edition 3.4 lite??
If you are using Ultimate Edition 3.4, id suggest you either upgrade to Ultimate Edition 3.5 or Ultimate Edition 3.4 lite(download and install) as they have newer packages.
Ultimate Edition 3.4 lite is new and has newer packages versus Ultimate Edition 3.5.....but the lite version has few packages installed.
Updating will update only your sources list, an Upgrade will change your system state. Do Not Upgrade. Also dont use update manager. Unless you have
the time to repair a broken system.
'sudo apt-get update' will not do anything...if you want new applications download and install them like firefox,chrome, kernels etc..
you can check md5 of disc if you have a flip-flop internet connection. Check How-to of forum--written clearly by Xanayoshi.
Checking it is no harm done. Recommended.