Upgrade from MX2004 to Flash Media Interactive Srvr 3

Hello,
We are currently using Flash MX 2004 server. In order to prepare for an upgrade to Flash Media Interactive Server 3, I cloned this server to make a VMWare image. I am working now in the VMWare server and noticed it did not carry over the license which is ok. I selected to run the trial for 30 days, however I cannot get MX2004 to recognize an existing project. If I try to open it it up, I get a invalid format message. I’m thinking of reinstalling the MX2004 to get it to recognize the existing project (that works on the live server), then after that, upgrade to the new Interactive Server 3. Another test was I had the individual upload to this vmware server and it doesn’t display the upgraded content.

Has anyone experienced this before when trying to set up a similiar test server with a different name (ex. server1 , test is server2?)