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You can restore and convert catalog to PSE11 in one step. Its one and the same things if you follow a 2 step approach, so its better you restore and convert your catalog directly to PSE11. Regarding the limits of catalog size, there have been users with a very huge amount of images and they have been able to work in PSE without any hassles. So it is absolutely fine to continue with same catalog.
Were you able to restore your catalog on the new PC?