Upgrade R2 to R3 (Same box) , with Audit database

Hi Experts,
We do not have a new Production Server for new R3 installation.
We are going to upgrade the current R2 to R3 in the same box. (With AD as authentication).
We have turned on the Audit service as well. So we have2 databases -  CMS and Audit databases.
May I know what are the steps to perform this upgrade?
Can I use the same audit database? Or should I create a new audit database?
Do I need to turn off the audit feature before upgrading to R3?

The current environment is R2 with SP2...
We use Java Tomcat as web server,  Windows AD as authentication, SQL 2005 DB for CMS and Audit Databases.
Install R3 from scratch? So we will have both R2 and R3 in same machine?
In that case, I should get the DBA (we do not have rights to create DB) to create 2 empty databases (CMS and Audit) for R3...
Below are the steps I can think of,  to have 2 BO in one machine:
1. Get the DBA to create 2 new databases
2. Install R3
3. Point CMS connection and Audit connection to the new databases
4. Use the import wizard to import reports/users/universes.
Below are the steps for upgrading R3 (only one BO in one machine):
1. Install R3
2. Choose the option "Upgrade"
Did I miss out anything? Appreciate your advice. Thanks!
Edited by: BK Ong on May 11, 2010 11:46 AM

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