You probably shouldn't update until the battery bug is fixed, but you can run the MDW 2-part installer for .602. Make absolutely sure you clear cache and data afterwards and do not restart between the parts (that means you can't use ROM manager - reboot into clockwork!!)
EDIT: I don't see why you don't want to SBF though - it's basically fail-safe. I had my laptop overheat and shut off while I was SBFing, and all I had to do was SBF again. I also had my USB come out while SBFing, and again, only had to SBF another time. As scary as it looks, it's really no big deal!
If you're are on 1.7.29 you don't want to update to 1.8 just go to the latest Froyo version for now which is 1.9.9. You can install 1.9.9 without SBF. All you need to do is wipe cache and dalvik then flash, no need to wipe data.
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