Install a second copy of ORACLE enterprise 9i DB on same HPUX Server

The vendor of third party software we are using has requested we install a second copy of the Oracle enterprise software for installing and testing Oracle patch upgrades.
We are currently running Oracle Enterprise 9.2.0.1. The vendor wants us to upgrade to patch set 9.2.0.5. They do not want us to touch the current environment. So their solution is to install a second copy of 9.2.0.1 and upgrade that to 9.2.0.5. Then migrate each instance of the database to the new environment.
Is that possible? Are there not files that are created at install time that are in common directories like /etc and /usr/local/bin?
It was also mentioned these location could not be changed when running ORACLE Installer.
Secondly another source said the patch set could be applied the current environment without affecting the current instances of the databases. Simply run the migrate utility against each database as we want to bring them into the new environment.
Any thoughts or documentation on this?

From your response I understand that common files like oraenv, tnsnames.ora, sqlnet.ora listener.ora and the ORACLE installer inventory file will not overwrite the previous installs file if I have a created and installed in a second oracle_home.
The plan would be to install the second copy of Oracle software and immediately install the patch set. I will not have any database instances associated with the new oracle_home. Next I would migrate each of the existing database instances from the original oracle_home through the migrate process. If I do it this way I will not need to shutdown the existing instances of Oracle during the install and patch upgrade. Is that correct?
Just to clarify another point. If the patch was installed on the first instance would the existing database instances be affected in some way before running the startup migrate catpatch etc? In other words could I still safely access the databases before doing the upgrade to the instances. Our vendor said that was possible but does not seem to be a good idea to me.

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Sorry
8(
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Install a second copy of ORACLE enterprise 9i DB on same HPUX Server

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