Which method is good for upgrade small size database

wants to upgrade 10g database to 11g.
production database 10g running on server1 wants to upgrade 11g at different server server2
which way is good.
------>>>>1 upgrade then migrate 2 different server.
---->>>>>2 migrate then upgrade database.
----->>>>other question
if am installing 11g on server2 and migrating 10g directly then there will be any issues coming future on production.

Pl identify exact versions (to 4 digits) of "10g" and "11g", along with the exact OS versions on the source and target. How big is your database and how much downtime can you afford ?
One straightforward option is export/import - Moving Data Using Oracle Data Pump
HTH
Srini

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