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Upgrading versions –
Anything specific I should be aware of before upgrading from an older version of firmware and BM (1.4 or 1.5) to the latest one or do I just install the new firmware, BM and Megapack and it will take care to cleanly install over the current one?
use the "Memory Card Manager" to "Remove mc0:/BOOT" to remove old BM before you install the latest.
do i have to delete bm every time i want to install the new fw and bm? or does it overwrite it automatically?
It depends on the versions you are installing and the one you are replacing. If there are too many changes in the PBAT language or the structure of the files, you'd better install everything again from scratch.
The best way to know when you have to do this is to read the included... readme
For example, here is what the file upgrade.txt says with the latest firmware version :
It couldn't be clearer
Steps for upgrading to BM 2.0 from BM 1.x
1. Build and burn an upgrade disc from the Release 20 software.
2. Boot the disc on the PS2.
3. Choose "Memory Card Manager", then "Remove mc0:/BOOT" to remove all old BM files and applications.
4. Return to the main menu and choose Upgrade Firmware.
5. Choose "Install BootManager" and select the Memory Card you wish to install it to.
6. When it's finished installing, reset the PS2.
The latest version (and probably every coming version) deletes the mc:/BM folder before installing (e.g. when upgrading BM2.0 to BM2.06), but BM1.x releases have to be deleted manually, like Yoc said, cause they use a different folder (BOOT).
best regards Jones23