If you are upgrading from release 1.0.3 or later you DO NOT need a dump/reload.
If you are upgrading from a release between 1.0.0RC6 and 1.0.2 (inclusive) and really want a live upgrade read the upgrade section of the 1.0.3 release notes chapter.
Upgrade from any release prior to 1.0.0RC6 requires an hard upgrade.

Fixed palloc(0) call in collection deserializer (only gives problem with --enable-cassert)
Fixed bbox cache handling bugs
Fixed geom_accum(NULL, NULL) segfault
Fixed segfault in addPoint()
Fixed short-allocation in lwcollection_clone()
Fixed bug in segmentize()
Fixed bbox computation of SnapToGrid output

Initial support for postgresql 8.2
Added missing SRID mismatch checks in GEOS ops