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Correct, but you may need to run the 'dist-upgrade' more than once until all the dependencies are sorted out. After the upgrade you also need to test things to make sure they still work; configuration file structures may have changed, some software may have been dropped and the older version doesn't run with the later system libraries, etc etc etc. One of the most annoying bits is replacing the system tools and kernel; be sure you have a live CD to help just in case something goes horribly wrong.
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