Updated sources.list, apt-get update and then dist-upgrade. Worked fine, no problems during the upgrade. Runs great, not experienced any problems, thus far. One point of interest though :
>From running startx, gnome (1.4) launches much quicker than on XF86 4.1.x (used to be about 10 secs from startx > gnome splash screen - it's now about 2 sec - thanks!). System is running unstable, P3 750, Radeon (1st gen) 32MB.