On top of a week-long hiatus for some girlfriend- and day job-related travel, I managed to nuke my server while trying to install WordPress 2.8. I would highly recommend backing up and turning off all widgets before attempting an update.
Anyway, the images are all missing and likely gone forever. Text, comments, formatting, etc. were all stored in databases and should be fine. Some small template changes have also been lost, but I can restore most of them from the Google cache.
We’re going to have the widgets off for a few days while we figure out what works and what doesn’t, but for the most part, things are back to normal.
Now that wordpress has the auto-update, it is so easy to upgrade without saving, etc. I got lazy and didn’t bother for 2.8 After reading your story I guess our team site just got lucky. That and it doesn’t run much for plugins/widgets.