Upgrade to FCS 3 - Un-install previous or not?

Intel iMac 3.06GHz
Hello everyone...
When upgrading from FCS 2 to FCS 3, is it ok to try upgrading from the current set-up, or is it advised to un-install the current version first?
A clone of the system already exists, so were safe. But I'm not sure which is the best way to do it.
Also, the current scratch disk is an external drive. If we upgrade, will Final Cut create new folders on there, or will it recognise the existing ones?
Lastly, if all the extra content from FCS 2 is already installed, will it recognise that and just update what is new?
Thank you very much!

The normal method is to upgrade over the existing setup. This will preserve settings (including scratch disk locations), but even if the odd one isn't preserved, you can reset easily in FC preferences.
The upgrade will replace existing applications with the newer versions, except for LiveType which isn't in FCS3. Your existing LiveType will be left alone (whereas, of course, if you remove FCS2 first, it'll be gone). It's your call whether that's an issue. The functionality of Livetype has been moved into Motion, so it isn't lost, but if you use it a lot, you'll probably want to keep it.
The content should be replaced too, but I have seen one case where it wasn't. I have my content on an external drive (you can customize during the install, so the disk space isn't an issue for me.

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