Is it imperative to install every update?

After reading the many problems that folk have had with installing updates I am getting very nervous about installing updates in case my computer goes on the blink. I have been told by someone more experienced than me , only to install updates that are classified as "critical" or "security". I now have SP1 installed correctly but there are 10 updates waiting to be installed , that are classed as "Important" or "recommended". I should be very grateful for any advice.

I would recommend security updates. Things to look out for is hardware updates, anything to do with graphics, sound, or motherboard updates should be done manually at the manufacturers website. Review the updates before installing and only install the updates you are happy with. If unsure then look on the forums first to see if the question about a particuler update has been asked before, if no joy there then ask the question saying what the update is and what it does and someone here will help.

Thank you for the very quick reply! I shall install all the important security ones now. Many thanks for your help; it is very much appreciated.