Now Ubuntu upgrades are hidden behind a GUI, and you are told not to do it manually. It's not uncommon that they fail to cover all difficult cases. Either way, I have Ubuntu on my mother's machine and I've become scared of making upgrades. A few times I had to drop to IRC to ask for specific instructions because I couldn't figure it on my own.
Since Etch (Etch to Lenny to Squeeze) except for a couple of minor glitches going with the defaults "just works".
From what I've seen Ubuntu often fails upgrades because of the GUI (at some point during upgrade one or other part of the GUI fails/restart and kills the upgrade process itself). Simple advice: dist-upgrade in a text console (not a gnome-terminal!), and it should work fine.