Word Press to 2.0.4
I have finally upgraded my word press to 2.0.4 which is the latest version currently. To upgrade is very easy. You only need 5 steps.
Step 1: Backup Database Tables and Files including .htaccess
Here, the objective is to save the data, and your customizations
Step 1a: Save DataUse phpMyAdmin or other appropriate tools provided by your webhost, to backup the database used by WordPress.
Step 1b: Save CustomizationsBasically, backup the files that you have changed or added since you installed the standard WordPress. Use an FTP tool to download a copy of all the files on the server, in the directory where you installed WordPress, including the .htaccess files if you have been playing with it. Backup at least the .htaccess file, the files used by your current theme (which will be in the /wp-content/ directory), the /wp-images/ directory with your uploaded images and files, any WordPress core files that you modified to use some “hack” directory, and the wp-config.php file which contains your database username, password etc.
Step 2: Deactivate Plugins
Deactivate all the Plugins you use at the Plugin Management Page ( http://example.com/wordpress/wp-admin/plugins.php ). Some Plugins might not work with WordPress 2.0.4, and that is why you want to deactivate them all. This will ensure that you don’t end up with an upgraded-but-broken installation of WordPress after the upgrade process.
Step 3: Overwrite Files
Get the latest and greatest WordPress (http://wordpress.org/download) and upload it to the WordPress directory, overwriting all the files that exist there. This will preserve your images and themes. What if something goes wrong, you ask? Well, did you not create a backup of all files in Step 1? You can fall back upon them in the worst case scenario. Deleting your old files on the server and uploading the newer files from the new version you downloaded is an alternative which will ensure that the files on the server have been replaced for sure.
Step 4: Run the upgrade script
Visit your blog’s Upgrade Page ( http://example.com/wordpress/wp-admin/upgrade.php ) and follow the instructions that are displayed.
The below image will be showed on your browser once you run the script.

Press the Upgrade wordpress link and you are done.
Step 5: Reactivate Plugins one by one
Reactivate the plugins, one by one, at the Plugin Management Page ( http://example.com/wordpress/wp-admin/plugins.php ). Check if everything works as expected. There is a list of Plugins that are known to work with WordPress 2.0 here. If some Plugins do not work, deactivate the plugin, then contact the plugin author to encourage the author to upgrade the plugin.
With five simple steps, u can easily upgrade your wordpress.
Guide from: The Codex


