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PHP 5.2.17 / Internal Server Errors

#1
When upgrading to xF 1.3.1 I received the following message...

The following warnings were detected when verifying that your server can run XenForo:
  • Your server is running an outdated and unsupported version of PHP (5.2.17). If possible, you should upgrade to PHP 5.4 or 5.5.
These may affect the proper execution of XenForo at times and should be resolved if possible.
The members are currently getting lots of "Internal Server Error"...could this be causing them? Should I have my PHP upgraded?
 
#4
I don't know anything about PHP or MySQL. My MySQL version...

5.0.96-community

Should I have that upgraded too?