I have installed WordPress 2.5 and its running very smoothly. Surprisingly no plugin or theme compatibility problems were found. If you find any problem with the site, report it to me.
Only problem is with this Recommended Tags Plugin. Though it still inserts tags into posts but they don’t show up under Tags used on this post under Tags menu of Write Post page. I have contacted the author of the plugin regarding this.
Other than this I found no problems and am enjoying the cool look of the dashboard which 2.5 offers.