not a vast amount of problems, but with a production environment you'd need to very much plan for a worst case scenario here. rhel3 uses a 2.4 kernel whilst rhel4 made the jump to 2.6, so you may well have issues with things around there, especially if your services are bespoke in any way. as long as you have disk images and such then an upgrade is worth it, and is by design meant to work just fine.
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