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RussTreFlag for United States of America

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Raising Forest Functional Level

My company is a single forest and a single domain. My domain functional level is Win 2003.

My DCs are all Windows 2003 SP2. My member servers are mostly Win 2003 &  2008.  I have couple Win 2012 and a few Win 2000 boxes left. My PCs are Win 7 and Win XP with a few Win 8/8.1.

My two part question is:

1) Any problems with me raising my FOREST Functional Level to Windows 2003?  
(My research suggests I should have no issues.)

1A) If no problem, should I do it now OR wait until  a little while prior to me raising my domain to Windows 2008R2?  
(I am planning for late April-early May upgrade.)
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Seth Simmons
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Thank you.