Bootz - I installed the Panther update over Jaguar on my new 17 without a single problem. I backed up just to be safe.
The 17 arrived with a dead DIMM slot and has to go back to Apple. Its going to be painful on one of my old machines for a week or two after getting used to the speed and beautiful screen on the 17.
You shouldn't run into any issues on the upgrade. As always, though, she should make a backup of her home directory and other important files she's created before installing the update.