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Yes, you can send the Connection Key to the users using CS3. They can connect and edit their site without any problem.
Only think you have to make sure is, your site should be in Transition Mode. Please refer to the blog, http://blogs.adobe.com/contribute/2009/09/compatibilty_transition_mode.html to make this setting.
Hope this helps you.
Thankyou for this help Dominic - much appriciated