As per the title really - can't see anyone else asking the question. Running a VPS, virtualised on Xen (I don't have access to the container), currently running 10.04, I logged in this morning and it offered: "New release 'natty' available. Run 'do-release-upgrade' to upgrade to it." Any harm in doing that?
There's no guarantee that everything will work out 100%, so I'd take a backup of the VM first before you try the upgrade. You might also want to check out this guide: http://www.howtoforge.com/how-to-upgrade-debian-lenny-debian-5.0-to-squeeze-debian-6.0-on-xen-vps It's for Debian, so I can't say if it can be applied to Ubuntu...