To achieve a reinstall/upgrade of this nature simply boot from a recent CD and when you get to the partitioning step, choose to 'manually' partition the disk. Choose where you want to install and make sure 'Format' is _not_ ticked. The installer will go through /bin, /usr, /var, /etc, /lib and so on deleting all files before the installation starts. It will _not_ delete /home.
Oooh thanks! I didn't know that :)
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