Version #3 is what you're asking about. #2 is close but not quite the same. Whichever you pick you should back up all of your information, just to be safe. If you go for #3, back your info up, upgrade, and then put your data back where it belongs.
I have heard (but never tried) that you can copy your system drive to an external firewire drive, then use option #3 to upgrade, and then finally use the setup assistant on the new system and tell it that the firewire drive is your "old" computer. It will bring all of your data over because it thinks the drive is your old computer you're upgrading from.
I plan on trying that way but only AFTER I burn my files to DVD as well as the firewire drive. That way, if the setup assistant plan doesn't work out, I can still get my data off of the DVDs.
This worked for me going from 10.2 to 10.3 on a powerbook. It's called a migration utility. It worked perfectly with a couple of gotchas. The install program installed a couple of things that conflicted with existing programs. For example, I needed to uninstall stuffit and reinstall it. But the one that really messed me up till I figured it out was it installed a trial version of ms office. Once I uninstalled that, my old office files worked fine. However these are separate issues from the migration utility. My desktop looked the same, my files were all placed where they should be, a huge time saver. User identities were all in place. No problems with permissions etc. Now whether tiger will update from 10.3 as well--we'll see. There is nothing special you need to do. Back up your system drive to a firewire drive. Erase and reformat your drive if you like. Run the installer and at the prompt follow the directions. The only thing different is since the firewire drive is not a computer, you can skip the step where you reboot the source disc. Just plug the firewire cable in when it tells you to and unplug it when it tell you to. It
Thanks Craig, do you know if any of these migration utilities allow one to reformat the hard drive? When I install Tiger, I want to do it on a totally clean drive, and then install my applications in a specific order. I want to install the new CS2 as well as the new FCP on a formatted hard drive. Karl