Just upgraded from WP1.2.2 to 126.96.36.199. Followed podz's upgrade instructions. Now I get several, but not all, of the sidebar/menu items treated (formatted) as if they are headers: the 'Categories', 'Search' and 'Meta' titles are OK, but the 'About', 'Links' and 'Blogs' titles are shown formatted as <h2> in style.css. They (the latter 3 titles) were not formatted as <h2> under WP 1.2.2. I made no changes in renaming wp-layout.css to style.css. Here's the link to my site: http://laceylibertarian.us .
Thanks for any help.