WordPress 2.9 is here and please before you upgrade make sure your MySQL is 4.1.2 or higher. Mine was not and I realized this after I started the upgrade process with the WordPress Automatic Upgrade Plugin, which meant I was stuck right in the middle. Rolling back to WordPress 2.8 was going to be difficult and upgrading MySQL to 5.x meant there could be a problem with importing the database with broken themes, images, plugins and so on. Thankfully I had a good friend to help me out and WordPress is also pretty well documented which meant I had no trouble in upgrading MySQL and upgrading to WordPress 2.9.
Documentation to upgrade to PHP5 here.
Documentation on upgrading WordPress here.

