Okay that was relatively easy and I'm now running on the newest version of WordPress, v2.0. Unfortunately my category pages are still not working so I'll be rewriting those once I can work out which one to edit! If anyone has any suggestions as to why using the Mod Rewrite the second page doesn't work I'd be interested to hear from you.
WP2 seems not too bad. It's got a few new features that will come in handy when setting it up for client's news sections. There's a WYSIWYG editor now (which I currently have on) – not sure if I personally will keep it on however as I do still prefer to handcode, but for certain clients who I'm installing it for it will come in very handy as they shy away from even seeing any XHTML code, even if they don't actually have to type it! Plus the file upload feature has been moved to the same page as the posting page, again not something I use but clients would. And finally Save and Continue Editing lets you also preview what you've just written. Handy for me as I often write out code (as some may have noticed) for PHP stuff and manage to break it at some point, so now I can check it first
Hmm there's no code option, yup I'll be switching this editor off now!