Rails 3.0 is not backward compatible with Rails 2.3.x. Likewise, in order to upgrade a Rails 2.3 project to Rails 3.0 you might need to apply some changes.
Generally speaking, Rails 3.0 is a major version upgrade and contains several new features. You cannot simply change the underlying framework version because the two releases have several differences.
The rails_upgrade Gem can help you upgrading your Rails 2.3 project to Rails 3. I also wrote an article about making your Rails 2.3 project more Rails 3 oriented in order to have an easier transition.