In Debian, there are 3 distributions: stable, testing, and unstable. Unstable is always called "Sid". Right now, stable is called "Woody" and testing is called "Sarge", but with Sarge frozen, this will change soon.
If you wish to upgrade to testing, then you should change each instance of the word "stable" to "testing" in the file "/etc/apt/sources.list" - then run an apt-get update, and then an apt-get dist-upgrade. Dist-upgrade will tell apt to try to upgrade all your packages, even if that means removing some obsoleted ones or installing new prerequisites.
If you just want to use "Sarge" when it becomes the stable distribution, you just have to wait until it releases (it should be around the end of this month, May 2005 - see
here). Then run apt-get update and apt-get dist-upgrade.
Good luck! Beware that whichever method you mean (Testing or Sarge/Stable) to use, it will probably take a while to download and install all the packages. Good luck!