Best upgrade path after hack

[jtapp]

My site has been compromised - anywhere I clock on the main page takes me to a Malware site. The links start like this

http://www.hibids10.com/sound?cver=1&refer=http

Can someone tell me what is the easiest way to upgrade? 

Can I install the new version of myBB into another folder, make a copy of the current database, run update scripts and point the new version to this updated database?

[Wires]

See here. This will cover most if not all the things you will need to do.