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An Adobe upgrade is an upgrade by price, only. What I mean is that you're buying a new, fully separate version of the Adobe software from whatever your previous version was, and upon installation, your previous version is left intact (hence the reason your icons did not change--CS4 was still installed).
An update, on the other hand (which is what the program automagically did), actually does replace files, but only in the version that you're updating. A semantic issue, perhaps, but an important distinction.
You can run CS4 and CS5 side-by-side if you like, but if you want to be rid of CS4 and maintain only CS5, you need to uninstall CS4--or preferably, reinstall from the OS up. I always like to start fresh when a new suite comes along.
Thanks, yup the fresh OS install sound like a good idea at this point. All the functionalality of CS5 64-bit seems to be all there.
Be sure to DE-activate everything before wiping your hard drive
What they said.
Your CS5 is an upgrade, not an update.