WordPress Version 3(Stable) is just released and so all wordpress bloggers should upgrade to the wordpress 3 from the older versions.You can install wordpress in two ways either automatically or manually.This post will explain you about upgrading wordpress v 2.7(just previous stable version) to wordpress v 3.
Upgrading to wordpress 3.0 From 2.9.2
1. Open your blog and login through the administrator account.
2. Deactivate all the plugins and make backup for post of all the authors(wordpress_author.xml) and also make a backup of sql database(database_name.sql) by logging to your hosting account.This step is extremely important!! otherwise you may loose all your posts in some cases.
3. On the Dashboard you will see an option for upgrading to wordpress 3 in top(as well as in right bottom corner and also in left).Click on “please upgrade to wordpress 3”.
4. Click on automatic installation and enter your hosting account details and proceed.
5. Installation will complete within a couple of minutes.
6. That’s all..
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You can also install it manually by downloading the package from wordpress official website.If you want to install manually then more tutorial can be found here – Install wordpress manually