How do I preserve icon locations when updating to ios 5?

I have lots of apps and icons arranged just the way I like them and I backed up my ipad.

Another message I get is "Updating to iOS 5.0 will delete all of the media, including iTunes Store purchases, on your iPad."

So I guess I need to:

1. Manually backup iPad
2. Apply iOS 5 update
3. Restore from backup.

PS. My "Sync Apps" checkbox in iTunes iPad Apps tab is NOT checked.