I have spent the morning finalising the last of the several WordPress installations that I look after to WordPress 2.6.2. Wouldn’t you know it but the only site that I had difficulties with was one of my own.
When I tried to run the upgrade script my blog reverted to a brand new fresh WordPress install. If I tried to run that script it appeared that I was still logged in to my administration panel but gave me password errors before returning to the installation script.
In order to fix the problem, I logged into phpMyAdmin and repaired the database tables for that particular blog. As I did that I got a confirmation message that there had been a problem in the wp-options table and that some records had been fixed.
After upgrading that particular blog I was in the middle of a post when the editting page froze and reverted back to the installation page. I applied the same fix only to have it happen again. At the moment things are stable. I found this page (and this one) which describe how others have had the same problem and details some steps for a restoration.
If it happens again I will need to look further.