Yes, if you download the ISO images, you can burn them to CD. You should be able to upgrade from any version to any version (you can even do a backwards upgrade, if the need arises). Then, you can either use livedrake to update, or you can restart your computer and boot off of CD1 and go through the update. Just make sure you select the option to update, not install. If you get to a section about partitions, then you selected install and will wipe everything out.
Personally I prefer to boot off of CD1 because livedrake is kind of annoying the way it displays the windows (basically each frame of the page is a separate window).
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