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It is possible. I did it about 3 months ago. First thing you should do is set up a test server. I think the biggest problem will be which modules you are using now. If there isn't a module for version 2.0x, that might be a problem. But best bet is to set up a test server and try it , here's how, delete all files (on the test server)and install 2.06 files in the root directory, chmod the right file/folders. Add the 2.0x modules you want to use, chmod any files/folders that need it in the modules, then go to your test server's web address and the install should begin. When it gets to a certain point it will notice you have version 1.3.8 files in your database, and update them to work with 2.0.6. Once you get it right then you can switch it over to your live site. Try it and let us know what happens. make sure when asking for help you mention you started with 1.3.8, most people only know the new version.