You can go straight to 3.0.12.
Personally I'd turn gzip off I think, just to give it one less thing to deal with.
Your phpBB2 database will not be affected by the conversion so you can do a trial and see what happens without danger. You may find you'll have to do it offline though with such a large DB.
Here's a couple of canned responses with more info
Information on how to convert from phpBB2 to phpBB3 is
here.
Basically, you must have both phpBB2 and phpBB3 installed on the same server. After you have finished installing phpBB3 you will have the option to convert your phpBB2 board using the built in converter. The information it asks you for is related to the phpBB2 installation and can be found in its config.php file on the server. All of your users, posts, forums, PMs etc are converted. However, styles and MODs are not (with the exception of the birthday and attachment MODs which are supported by the converter). The phpBB2 database is not converted
per se, it is merely read and converted/moved to the new phpBB3 database, so if it goes wrong your old board will not be affected at all. At the end of the conversion, once you’re happy it’s all working, your phpBB2 database and files can be backed up and removed if you so wish. They are not connected to the new installation in any way.
Timeouts, blank screens and “500 internal error” messages suggest that your server is not coping with the conversion. You can ask your hosts if they can give you some leeway on the settings for a couple of hours while you try to convert, you can look in the site logs to see if there are clues for the blank screens or you can do the conversion offline
Offline Conversions