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I think the best thing to do is to ask your VPS provider if they support this upgrade, perhaps they will invite you to reimage your VPS using Lenny(not an option for all the services already running on your VPS).
I have already use Lenny under OpenVZ(is the opensource option for Virtuozzo) without any issue, although I haven't upgraded Etch to Lenny under OpenVZ.
"It is human nature to think wisely and act in an absurd fashion."
"Todo el desorden del mundo proviene de las profesiones mal o mediocremente servidas"