On my third attempt, I have managed to upgrade to WordPress 2. Forget the documented upgrade process - it's broken. In a previous attempt, a forum (sorry, didn't record link) was fully of frustrated users, some with successful hacks, trying to upgrade. Some joker had marked the issue as resolved - which it is not.
Nothing suggested worked for me, so I will share what I have had to do to get my upgrade to work. CAVEAT: This information is provided in good faith but without warranty (blah, blah) - use at your own risk and don't blame me if you trash your 'blog, which you did back up before you started, didn't you?
- Create a new directory on the same level as your 'wordpress' directory. I called mine wptmp.
- Untar your WordPress distribution in the temporary directory.
- (assuming it's called wptmp) mv wordpress ../wp2.
- Set up wp-config.php in wp2, make sure that your web server will recognise the wp2 directory and proceed to install WordPress anew, USING A NEW DATABASE.
- Copy over your wp-content and wp-images stuff to wp2.
- Do a dbdump on your old WordPress database; remove all references to wp_users and wp_usermeta.
- mysql --user=your_user_name --password=your_user_password --database=your_new_wordpress_database < your_dump_file.sql