OK, I can share my successful experience of upgrading:
Go to System -> Magento Connect -> Magento Connect Manager
Log in using your username and password
Click on “Check for Upgrades” button
4.You will notice that most package rows turn to yellow. These packages are the only that have available updates. Go to each package row, click on “Actions” drop-down menu and select the most current stable version available.
Note: Stable version available may vary for each package. For example, some packages may have 1.7.0.2 upgrade version and others 1.7.0.1 or lower. Don’t bother with this, just pick the latest stable version available.
When you are done selecting upgrade version for all packages, click on “Commit Changes” button.
Now, you have to wait. Give it some time. During upgrading process, you may see various notes or outputs that may be tricky and you may think that the process is done. Well, IT IS NOT. Just wait, give it some more minutes. The process will be done when there is no activity in the “command line” like console for about one minute.
Click on “Refresh” button. You are almost done! Technically, you have completed the upgrade process.
Go to your cPanel file manager or your FTP client and delete EVERYTHING in var/ directory.
Last but not least, reindex data in Admin -> Index Management
When you enter admin section and scroll down, you will notice that it says “Magento ver. 1.7.0.2”
This process worked for me fine.
./mage upgrade-all --force
or./mage install http://connect20.magentocommerce.com/community Mage_All_Latest --force
? – Dmytro Zavalkin