The PHP development team today released PHP 5.3.2 which includes many bug fixes, added some security improvements and implemented many more changes. You can go to the PHP site and download it right away from your preferred mirror, but if you are a ServerGrove VPS customer you can open a support ticket and we will upgrade it for you. If you plan to get a VPS with PHP 5.3 make sure to select the 5.3 version when you place your order and we will install the latest version.
As is the case with any upgrade, some applications may not run with PHP 5.3 so make sure your site or application is ready for the upgrade. The benefits of upgrading to PHP 5.3 are plenty, lots of new features and significant speed and memory management improvements which is big by our book.
Some PHP applications already require PHP 5.3, the most known ones are Symfony 2.0 and Lithium. If you need to develop with PHP 5.3, we recommend you to take a look at Zend Server CE 5.0 for your development environment, which we just wrote a blog post about it.