Yes, you can. It can only have positive results if you update your firmware. Newer firmware will most likely have less bugs and in some cases improve your phone's performance. If you are still new to flashing (updating) then I recommend using Sony Ericsson Update Service (SEUS in short).
You can download SEUS for free here:
Sony Ericsson - Support - Update Service Application
Read everything carefully on this page and follow the instructions to update your phone.
*Make sure your phone is fully charged
*Back up any data like sim contacts, sms's etc. You can first remove your memory card to forecome losing the data on it
*After you installed the SEUS software (as decribed in the link above) run it and make sure you follow the steps carefully.
Hope I could help!:)