Experience with Changing Domain Names

[Useless]

Anyone have experience with swapping domain names on an existing site?

Here's the scenario:
A web site has always been on domain1.com, but you aren't particular fond of the name. So, you purchase a new domain name, move the site's files to domain2.com, then do a 301 redirect from domain1.com > domain2.com.

Now, the big questions. If you have done this, how did it effect traffic and page rank? From my understanding, if one does the 301, Google will eventually re-assign the rage rank to the new domain. Is there a substantial loss of traffic during the transition period?

Thanks a bunch!