No, you don't have to upgrade jQuery, but they do make significant improvements. I'd suggest 1.8.3. The 1.9.x versions so far don't work with SPServices (their blunders not mine).
Add an alert in the completefunc to see what you are getting back, or look at things in the Net tab of Firebug.
alert(xData.responseText);
M.
Add an alert in the completefunc to see what you are getting back, or look at things in the Net tab of Firebug.
alert(xData.responseText);
M.