Nah, I was getting gifts from my friends in the game before 1.4. It may have helped that you cleared the old stuff though, because from what I understand the scripts just get jumbled or the game will just act funny when the new updates are added to the old.
Everytime there is an update, I clear everything out, except my save files because those should be safe unless you know they are corrupted. As a general rule, it's called clearing the cache btw, it's always best to do this, as it will clear out the bugs that were there previous that are now fixed, and that there won't be any greater chance that your game will get screwy. Once I have it all cleared out and the new stuff is applied, I save it and close out the entire game then restart it. I also will wait about 5 minutes before moving so that the scripts have all had a chance to run.
I am on the PS3, might be a little overkill to do, but it's just what I found to be a good way to ensure a good play session with a new update.
EDIT: Clearing the old game data files is done on the dashboard or the xbox menu, then I start a game and save it, then close it out and start up the game again with the save file. I wanted to clear that up, because after I read it again I confused myself, lol.