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As you all know Wordpress 2.7 is now available and you need to upgrade from your lower version of wordpress to 2.7 version. Many of them are little bit nervous to do this because a small  mistake in upgradation can harm their current blog database. So i thought let me myself give you some steps so that you can upgrade your wordpress blog in safer way. Thanks to Wordpress Developers to give a step by step procedure but below i have expalined a little bit for newbies to understand it.

Following are the steps to upgrade :

1. Download the latest WordPress package and extract the files on your computer.
2. Take a backup of your blog database and blog files. (Click here for instruction).
3. Login to wordpress admin panel and disable all plugins.
4. Delete all the old files present in your /wp-include and /wp-admin directories from your ftp server.
5. Copy the new WordPress files extracted in the step to your server.
6. Open your WordPress admin panel by pointing your browser to /wp-admin of your blog; WordPress prompts to you to perform database upgrade. Click on the upgrade button.
7. That’s it. Your blog is upgraded to the latest version.
8. Now activate all the plug-ins that are disabled in the step 3 and start exploring the new features of WordPress 2.7.

or

else you can watch the below video to understand more clearly.