We made the jump to password level 2 this past year. It was mostly transparent. We did have a problem with one RF device that doesn't allow lowercase passwords (needs bios update of some kind). Other than that, you really can just turn it on. Since the users already had long password support in windows, email, and novell, it seems a no brainer to have long password in i. It also allows you to get ready to move to some sort of auto syncing password support (although EIM would handle this as well).
One thing to remember is that upon transition, passwords are created both upper and lower case until the next password change. This got us on one of our security profiles as we discovered case didn't matter -- until it was time to change and suddenly it did matter.
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