I've upgraded a couple of machines from Warty to Hoary without any problems, but my primary workstation had trouble with the sound card (audigy 2) afterwards. Took some fidling to get it to come together but in the end it worked just fine...
I've also done a clean install of Hoary back then when I got my new laptop... results were pretty much the same.
I'll probably try the Hoary -> Breezy upgrade in VMWare first. I'm currently running the Breezy Beta in VMWare and I must say i'm very impressed with all the new stuff that hits the repo's every day.
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