1. You should do "apt-get dist-upgrade" to get new kernel packages as well, otherwise you are stuck on an old kernel. (You might want that. I prefer updated kernel for the security, firefoxen, etc.). "apt-get upgrade" will only update existing packages - but the kernel updates require new packages to be installed. 2. If you're on ubuntu, root already has no password, and your initial setup user (whether it is called…
The server should also be rebooted. Applying kernel updates makes no good if you never apply them!
screen -x is equivalent to screen -xR afaict:)
I'd also add @reboot screen to crontab, which will recreate a session on startup - in my bashrc I have :
if [ "a$STY" == "a" ]; then screen -x fi
Other useful things include actually setting up backups (duplicity is a useful first step here), installing munin/nagios to monitor the new box.
Realistically if you are doing this more than once per blue moon, then you should be using something like puppet to do this automagically.