Maybe. If you take the OTA, you will probably lose root and your recovery might get over written. Devices are finicky in this aspect, and it depends what is in the update. You can always check the Dev threads either here or at xda developers and see if others had issues.
Best case, you get your update, no damage done.
Next best case, see original comment.
Worst case, you fubar your device, and spend countless hours finding a method to put it all back together.
CIP; When Acer recently pushed the 2.3 update, it installed a new more secure bootloader.It wiped out root, recovery, and the original root method no longer worked. Took a couple of weeks to sort out the mess.
So, you take your chances. Most folks will refuse the OTA in your case, and opt for a stock rooted rom.