asterisk users - Jan 2008 - Upgrade fails, need system upgrade advice

I have a AMD64 CPU and use SuSE 9.2 with kernel 2.6.8-18
I tried to upgrade svn version 1.4.x but it fails at each part and
mainly because the system is with 1100 days getting to old.

I have to make a decision and need your advice.

CPU AMD64 3200+
1 GB RAM
Digium card with 2 FXS and 2 FXO
external Wellgate box 3804

I want to keep my current settings (backup /etc/asterisk and
/var/lib/asterisk and /var/spool/asterisk)
I use festiva
I need multiple fax on different extensions
I would like to run also OpenSer on the same machine


I would like to re-install a new system with svn asterisk 1.4.x and the
above settings.
Would you suggest me to install
a. OpenSuse 10.x
b. Ubuntu desktop
c. Ubuntu server

Any other hints? to backup directories? or just use a new hard disk.
With LVM?

bye

Ronald