I MAY take JLPT 1 at the end of 2010, but I'm not ready for it this year. Depending on the registration dates in Japan, I MIGHT consider signing up and taking JLPT 2 again since I'm certain I'd pass it this time (missed it by a few damn points last time aaaahhh!)
JLPT 3 you'd absolutely pass Nick. The gap between 3 and 2 is freaking HUGE though. Keep in mind I'm talking about the "old 3" as they are changing to 5 levels next year I believe. They are testing TWICE a year in Japan, China and Korea now... but still once in the US it seems
However, may SURE you get one of those sample test books and take a few mock-runs. Half of passing any test is knowing how they test is DONE. This sounds like a crazy statement, but I'm dead serious about that. I've passed tests and classes with A's even when I don't really know the material simple cause I focused on knowing how and what would be tested. It can be that extreme of a difference sometimes depending on the test.
For taking the JLPT there are two MAJOR areas you need to focus on (especially for JLPT 2 and 1) That is "plug in grammar" for the grammar sections (tons of easy points if you know how formulate the questions) and "reading efficiency." These two will DESTROY you on the test if you are not especially good at them. The reasons for this are:
1) While the JLPT 3 (old) has a very small reading section, JLPT 2 has a huge jump in material (aka 4 pages compared to 12) and it is much more complex. Even more so with JLPT 1. Moreover, usually over 25% of your score comes from these reading sections! Finally, you are given VERY little time for this section compared to the ratio of time you are given for completing other areas of the test, surprisingly so. If you cannot read clearly and FAST, you will lose a LOT of points and likely fail the test just because of this section alone.
2) The second most important area is the grammar section. It is usually worth about 20% of the test. However, unlike the reading section, the JLPT focuses on specific grammar patterns per level in a set format. What this means, is that you can focus on these grammar patterns and recognize key particles or structures that give you the answer almost immediately IF you know what to look for. The trap here, is that if you don't focus on these specific patterns and nuances, even if you speak or know Japanese fairly well, you may get tons of these wrong if you don't understand specifically what they are looking for.
The kanji readings are a bit of a pain (the first section) but usually you'll know the vocab if you have focused on reading enough. Finally, the listening section is almost always a cakewalk and very direct. I can pass JLPT 1 listening sections at my level now. It tends to be the easiest section of the test by a long shot for some reason.
Hope this helps!