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Software
Test the operating system.
Contact software vendors for compliance status and
Availability of Upgrades in time.
Custom Applications:
Redesign/restructure program data division
Test embedded date logic - locate problems
Update logic
Redesign/develop test data.
Recompile/Debug programs
Re-test programs, especially logic.
Integrated test across programs/systems (ripple effect).
Particularly test end of period processes (month/quarter/year).
Don't forget the need to revise test data/test cases.
Y2K fixes may cause system performance degradation - particularly during the conversion period.

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