Using CS3 and CS4 on the same computer

I have CS3 and have used it for about two years completing many projects and I am considering upgrading to either CS4 or CS5.  When and if i do this will I have to delete CS3 and replace it with the newer version or can they both remain functional on the computer?  And how compatible are the projects, can you open a CS3 project in CS4 or CS5 without issues?

CS5 will ask to convert and save new copies of your CS3 and 4 projects when you open them. They will work in CS5, but they will not be backwards-compatible.
And how compatible are the projects, can you open a CS3 project in CS4
or CS5 without issues?

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