Upgrading to Lion and losing apps

Here's my dilema... I really want to upgrade to Lion for obvious reason, but am a little nervous about losing all my apps. For instance, I bought the new Microsoft Office and Adobe Creative Suite on student discounts, so I only recieved one activation code for those. If I have to reinstall those apps after installing Lion, will that one activation code still work?
Would it be better to go the route of backing up everything to Time Machine? I hope I'm correct when I assume I won't have to activate any apps transferred through TIme Machine.
I would appreaciate help from anyone who can clear this up for me!
Thank you in advance!

What's a body to do?  Apple may be shafting me by dropping support for older applications but they finally satisfied me by coming out with the new MacBook Air, so I got me a 13"/256 GB storage/4 GB RAM/i7 birthday present to myself, complete with Lion and I will go ahead and install Windows 7/Parallels so I can run Quicken 2011 for Windows.
This machine is also a compromise--I have an original iPad and find myself very frustrated by the lack of Flash support--too many of the web sites I use seem to have embedded Flash videos or other Flash graphics, but I need a highly portable computer to take with me when I travel and I want to be able to run both Flash and Quicken on it so I've been waiting for the new Airs.  And, while portability said "11 inch model", the likelihood of running Windows in a window on my MacOS screen (and watching movies) and the need for room to install both OSs led me to the 13 inch with 256 GB of space.
So I will be running Quicken henceforth on Windows and, I suppose, Turbotax as well.

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    Click to view full size
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