The latest incremental release of WordPress is now out. This contains a number of fixes and some security updates. It is strongly recommended that all WP users update their sites as soon as possible.
One of the fixes is for a problem that occurred with 2.0.5 on some sites – this is fixed, so there’s no excuse not to update. This is likely to be the last minor release before the next new version (currently known as 2.1, but that number may grow) appears. That will be a much bigger update with new features and a greater chance of upsetting some plugins, so it’s worth having a play with the beta version on a test site, if you have one.
See the WordPress Development Blog for details.
If you have shell access (Unix command line stuff) to your website and you know what you’re doing, you might want to look at Brian Layman’s new improved upgrade script. This makes the process very easy and very quick. It’s even better if you have several WordPress sites on the same server, as it can do them all in one process. But please note that the script is new, and hasn’t had as much testing as it really needs. Use at your own risk, as Brian makes clear. All I can say is that it worked beautifully for me. If you’re not used to playing with command lines and editing script files, it’s probably not for you, though.