Chris,
Yup, what you describe the is the right path. Just install the newest release using the Joomla installation manager and JFBConnect will automatically detect your previous version and perform any updates to the database and files as required. Shouldn't take more than a minute.
Of course, once upgraded, check the JFBConnect -> Configuration area to make sure everything is still configured as you wanted as well as setting up the new features.
I hope that helps,
Alex