How to upgrade from Rails 3.0 to 3.1

I have an application in Rails 3.0, which I want to upgrade to Rails
What should be the right approach to go for it?
I have thought of this, and these are some of the things that come to
my mind. I don’t know which one to do first, and how to perform each
step in its entirety.

  1. Get all my js files from /public/javascripts folder and then drop
    them in their appropriate places as per the asset pipeline concept.
  2. Repeat step 1 for all the stylesheets and categorise them too.

What else? Am I missing something?
And any ideas on how to do steps 1 and 2 in the best way.