The /etc/apt/sources.list to say sarge vs. stable/woody.
Don't use the term "testing".
apt-get update && apt-get upgrade and see what happens.
If all goes well or there is too much to do, with libc stuff blocking nearly everything then you need to go onto the next step.
apt-get -u dist-upgrade
That should theoretically bring you right up to date.
Since Sarge is "supposed to be" release @ the end of May... (end of June likely or later) this might just be you path of best options.
The one bad thing about Ubuntu is "releases every 6 months" whether or not it needs it. Plus, even though you can do a custom on Ubuntu to get a server, why for would you do that when Ubuntu is based on more Graphical releases.
Thoughts is all.