I do not have a test environment, but want to apply MDT 2013 Update 1.  It is my understanding that MDT 2013 is uninstalled does that mean it will break my current package of Toolkit and such?  Any gotchas?  Good Blog Post on this process?

Read this blog post: http://deploymentresearch.com/Research/Post/504/A-Geeks-Guide-for-upgrading-MDT-2013-to-MDT-2013-Update-1

 It is my understanding that MDT 2013 is uninstalled does that mean it will break my current package of Toolkit and such?  ...  Good Blog Post on this process?

Why do you want to uninstall it at all? A blog post for what process?

Here is a list of known issues with MDT 2013 Update 1.  There is a new release coming soon according to the post.

http://blogs.technet.com/b/msdeployment/archive/2015/08/25/mdt-2013-update-1-release-notes-and-known-issues.aspx

Regarding your question about the current MDT 2013 packages, I have my Windows 8.1 TS still running on the MDT 2013 boot images, toolkit files and settings package.  Uninstalling MDT 2013 will not remove your packages.

So ultimately I should waite for Update 1 with fixes and my current MDT Toolkit packages will be okay... Correct?

Unless you really want to start Windows 10 deployments right now, might be best to wait until the new version is released.