I haven't really been up to date on how jailbreaking works ever since Spirit came out for 3.1.3. I was considering updating to iOS4 but not sure if I should. Is there any major reasons why I shouldn't upgrade from 3.1.3 to iOS4? Is there anything I can do better/easier on 3.1.3 that I can't on iOS4?
You should be fine to update. It will add quite a few features. If you plan on jailbreaking you should stick to 4.1 (as long as you have SHSH) otherwise your jailbreak will be tethered on 4.2.1