I just upgraded my server yesterday from Moodle 2.0.5+ to Moodle 2.2+ (Build: 20111209).
The upgrade performed without error or warning and seemed to go smoothly. I'm working on testing it for the next couple of days before the new semester begins in January.
One problem I did encounter was that most (possibly all) user passwords did not correctly migrate over (including mine as the administrator). There seems to be some difference in the hashing algorithm between the two versions. Anybody know this difference?
The work around was to publish a news announcement on the site asking people to click the "lost password" button and have a new password emailed to them but I expect that some students will have orphaned mailboxes and need manual password sets in January.