For some time I have been trying to figure out how to successfully upgrade my Yahoo based blog from Word Press 2.0.2.  After several attempts and a decision to transfer the domain I stumbled upon the upgrade method by chance.  Here are the steps.

1. First download your entire blog directory using and FTP client.  I like WS-FTP except you have to pay for it.  FileZilla, the best freebie is almost as powerful as WS-FTP, but it is free and much simpler to use unless you wish to have multiple FTP sessions going at once.
2. Once downloaded delete everything in the blog directory on your domain.  Do not delete the blog directory itself.
3. While deleting which may take a while if your blog was big, download and extract the latest copy of WordPress.
4. Once the deletion is over reset your blog update controls on the blog manager page to manual.
5. FTP everything in the WordPress directory to your blog directory
6. Upload your old blogs wp-config.php back to your blog directory.
7. Load your blog page and it will automatically take you through the rest of the upgrade process.
8. Happy blogging with all the new features and all your old posts.