I've downloaded Firefox 5 and dragged it into by applications folder on my MAC. However, when I go to "About Firefox" it still shows version 4.0.1. What am I doing wrong?

No more details.

Try to drag the Firefox 4.0.1 version to the trash before installing the Firefox 5.0.1 version
Your profile data is stored elsewhere in the Firefox Profile Folder, so you won't lose your bookmarks and other personal data.
* http://kb.mozillazine.org/Profile_folder_-_Firefox

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