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You can have both suites installed at the same time. They do not interfere with each other, nor does the new version cancel the license from older versions.
You can install each suite on two rigs, desktop and laptop, so you can work while away. There's no need to uninstall CS4 from the desktop first.
You can also work in CS4 on your laptop while CS5 is running on your desktop.
You can also have CS4 and CS5 installed together
on more than two systems (in my case - four).
The limitation of two systems applies to "activation" not installation.
You can have both CS4 and CS5 "activated" on only two systems at once,
but installed on as many as you like.
The deactivation / activation process is simple and instant.
Thanks to you both. Maybe it's just -me- but for about the 1st 6 months after installing CS4 it would periodically ask me to 're-activate'... usually after an internet outage... which is what made me wonder about their 'licensing server'.