Major new features include the Linux 2.6 Kernel, SELinux, udev replacing the /dev system, Xorg, MySQL4, CyrusIMAPD, Gnome 2.8 and KDE 3.3. These improvements along with many more are detailed in the release notes available online (http://mirror.centos.org/centos/4/os...-NOTES-en.html)
Although SELinux is not yet supported by control panels such as cPanel, the advantages of the Linux 2.6 Kernal make the upgrade worth it.
Be aware that upgrading from v3.4 to v4 can easily make your server unbootable. Be very careful and read the CentOS documentation (www.centos.org) if you consider doing this. The recommended path by RH and CentOS is to start with a clean OS install of v4.
Centos 3.4 is fine and upgrading to 4.0 may cause some issues with your control panel.
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I attempted a remote upgrade from 3.4 to 4.0 and ended up paying the datacenter techs to do a physical upgrade from disk due to errors. I know there was a few posts on the centos forums saying they did it without problems but I wasnt so lucky..