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As Thomas says, no, both can live side by side...but the odds are if you do a lot of raw processing, you really won't be pending much time in Camera Rae 4 and Photoshop CS3...just warning ya :~)
That's great! Thanks Thomas and Jeff. Wow I didn't know the creator of Photoshop answers forums questions directly himself. =)
I'm tentative about installing the free trial; I'm a little worried that CS4 won't work too well on my system with its current specs, so I definitely want to install it separately without it affecting my current copy of CS4 and Bridge (other than stealing file associations).
I'm really anxious to try out the new Adjustment Brush in Raw 5.
I was worried about performance, as I have a 'senior' computer, and I haven't noticed Photoshop CS4 running any slower than CS3, apart from maybe some of the newer functions.
If I can humbly add an extra comment to the DEFINITIVE EXPERT answers;
Installing the upgrade version of CS4 without removing CS3 also leaves CS3 functional. Now I just have to figure out if I can safely remove CS3 without messing up anything.
However this is the paid for (upgrade) version. With an install of a trial version a couple of numbers back, removal of the trial damaged Bridge and after a lot of troubleshooting, I had to completely reinstall the whole earlier suite (I have CS2 suite as well) to get back. Since that was an upgrade as well it ended up being a painful and long winded recovery.
The best solution is just to buy whatever version of CS4 you qualify for and forget about trials. There are a LOT of really useful improvements as well as a big leap with layers and masks and non-modal edits. Brilliant!
I've used every Photoshop trial version available before upgrading and have never had any problems.
I have not, however, bought any version of the whole suite. I see no reason to update my older versions of Illustrator, InDesign or Acrobat.