I find Firefox 2 to be almost unusable because rendering lots of complex Javascript and Flash eats up an enormous amount of memory. Firefox 3's rendering engine is much better; I'd recommend everyone try it and see if it works for them. There are some other nice new features, like URL auto completion suggesting your most commonly visited sites/directories first.
Use this tool to force your extensions to work with Firefox 3. http://www.oxymoronical.com/web/firefox/nightly