Depends what you mean by
putting it back to factory condition.
The revision of the BIOS really shouldn't matter, and I'd leave it with the newer version unless you have specific issues with that.
If restoring factory conditions means restoring the computer from the recovery partition/recovery DVD, then updating Windows will be 100% waste of time - it'll all be wiped and replaced with the windows install as it was when it left the factory.
Which, unless I'm misunderstanding you, means you'll lose any programs you've installed since, and any data/settings/documents/photos etc etc.
So make copies of your files first and think carefully about what you're about to do.
Ian