Ask yourself first do you need the domain information, or is it easy to recreate. If you have a small domain with just a few users, it might be worth it to just recreate users, etc. If you need the domain info, you can do an upgrade or a migration. The proper way to upgrade is to:
(there are many more steps but these are the major ones)
Sync up BDC with PDC, take BDC offline
Make sure all apps/ hardware is win2k compliant on your PDC.
Backup PDC
Upgrade PDC to win2k, if problems you can promote your BDC to PDC and restore
Migration involves using migration tools to get users, from PDC to win2k server, there are many steps involved in this that you would have to research. My advice is be sure you have a good backup before doing anything, and a recovery plan, usually things go fine, but I've had to go to tape several times for different problems. Take care.