Now that you are at Fedora Core 2 you can jump to Fedora Core 3 as the next step.  For those of you who have been using Fedora Core 2 and have not read Fedora Core 1 to Fedora Core 2 Upgrade please take a look.  The procedures here are identical except for some minor changes. 
 

You should pay attention to the versions in the article replacing 2 for 3 and 1 for 2 (In that order).  Otherwise the general procedure on the above link is the same except for the following item:
 

8 ) Install fedora-relese either using http://download.fedora.redhat.com/pub/fedora/linux/core/3/i386/os/Fedora/RPMS/fedora-release-3-8.i386.rpm or use another mirror from the fedora.redhat.com site.  You can also use the mirrors from fedoralegacy.org if your distribution is too old as well as refer to the first upgrade from Fedora Core 1 to Fedora Core 2 above for more in legacy links.