According to a Cisco TAC tech. you can upgrade the ASA from 7.0(4) to 7.2(1) without doing incremental upgrades. But on the 7.2(1) release notes it states otherwise !
HELP !!!
Upgrading to a New Software Version
If you have a Cisco.com (CDC) login, you can obtain software from the following website:
http://www.cisco.com/kobayashi/sw-center/products.shtml
You must upgrade or downgrade from Version 7.1.(x) to 7.2(1) and vice versa because older versions of the ASA images do not recognize new ASDM images, new ASA images do not recognize old ASDM images.
For information on how to load an image, see the " Downloading Files" section in the Cisco Security Appliance Command Line Configuration Guide.
To upgrade from Version 7.1.(x) to 7.2(1), you must perform the following steps: