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For me the main gotcha is the price. As I use the whole suite, I'm looking at $1,100 for the upgrade. The new features and added bugs just weren't worth that price.
In my opinion, unless you need P2 editing, stick with 2.0 and save your money for CS4.
What sort of added bugs are there? (I'm just looking at Premiere and Encore -- I'm skipping on the whole suite.)
I need to get Encore. It comes packaged with Premiere CS3. I figure upgrading my Premiere Pro 2.0 to CS3 is the easiest way to get Encore. True? (Otherwise, Premiere Pro 2.0 is fine by me.)
There are a few features in PPro CS3 (as well as Encore CS3) that have made life much easier for me and increased productivity and profitability for me. Being able to toggle a panel to/from full screen is awesome, especially for storyboarding. Using the ALT modifier to replace clips on the timeline is a good timesaver.
It "feels" like it runs faster on my machine, but I haven't done any real tests myself to determine if that is true or not.
More output options in the Adobe Media Encoder....that's nice to have.
Since PPro now comes with Encore, it would probably be worthwhile to discuss those features here as well, but you can probably find out more at the Encore forum.
Quite a few folks seem to be having difficulty editing HDV that they didn't have with 2.0. I myself noticed a redraw flickering that wasn't work stopping, but did annoy the hell out of me. And the same exact media in the same exact project on the same exact computer saw a spike in CPU usage. In 2.0 playing simple DV used about 15% CPU cycles. In CS3 that jumped to over 30%. That just ain't good for the CPU.
Now, despite all this, if you don't already have Encore, if you're going from just Premiere 2.0 to just Premiere CS3 (which now includes Encore), then that will probably be worth the upgrade price, which is much less than $1,100.
The general rule for any software upgrade is always the same: ignore the manufacturer's (or reviewer's) claim that the upgrade is a must and study the new features if any. Of course many upgrades may have some new convenience features which may be important for some users (on a deadline for example). In your case, getting Encore may be worth it.
In the case of Premiere PRO CS3, the main effort by Adobe was to port it to MAC. They made changes to the Premiere PRO engine introducing new bugs and removing some features (short-cuts, etc..) as well as making some 3rd party plug-ins inoperable.
It is always hazardous to carry a project to a new version. While possible it is never perfect and almost always requires hours of work to remedy. It is always better to finish a project in the version where started.