upgrade from parallels desktop 3 to parallels 5

roda

Bit poster
I recently purchased a Parallels Desktop 5 disk.
Can I upgrade form a complete program Parallels Desktop 5 disk?
Also, how do I back up my VM in Parallels Desktop 3?
After upgrade, do I start Parallels Desktop 5 from the finder?
Will Parallels Desktop 5 show my Windows XP VM?

Thanks for and answer to these questions.
 
I just did a 3 to 5 (required after going from OSX 10.5 to 10.6).
The upgrade asks if you want to back up your vm.
(If you have separate virtual disks, it automatically merges those).
I just have Parallels in the dock.

Problems:
Cursor is slow and flickers from black to white a 1/4" away. (About to put me in a seizure.)
VM disks no longer show on Mac desktop (configuration has this checked but complains about a path error).
On startup, the VM can't connect to dvd and waits until I click a box.
 
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