Upgrading from 1.07 to 1.2-Beta

Whats the best way to upgrade my version of asterisk without erasing all my config data ?

Move /etc/asterisk to /etc/asterisk-backup or something and then install the new system. You can then save the new /etc/asterisk somewhere for reference and move /etc/asterisk-backup back to /etc/asterisk. It’s pretty simple really!