I just noticed that Yahoo Web Hosting now uses WP 2.3.3 as the default version of WordPress. I was encouraged by that since I had been stuck at 2.0.2 for so darn long!
I started a new blog at 2.3.3 and then installed the Instant Upgrade Plug-In. When I ran the plug-in, I had to choose the HTTP upgrade, because the FTP option would not work. Within seconds, I had 2.5.1 running on my Yahoo hosted test blog without any fuss.
I did run into one problem when I upgraded my personal blog from WP 2.0.2 to 2.5.1 using the Instant Upgrade Plug-In. I noticed that the links wouldn’t work (each time they tried to connect they caused an error in which Firefox said “the server is redirecting the request for this address in a way that will never complete”). I am not sure what caused it. Nonetheless, I exported the contents of that blog, deleted it, and the started a new blog at the same subdomain, importing the old material. The new blog began as WordPress 2.3.3., and then I upgraded using the plug-in, and so far, 2.5.1 is installed and working with no problems! I am very happy about this because I like Yahoo Web Hosting, but have been very annoyed at their outdated version of WordPress they offer!