CRM Upgrade from 4.0 to 5.0

UPGRADING FROM DYNAMICS CRM 4.0.

1. Get a full backup of your current Organization SQL Server database on Dynamics CRM 4.0.
2. Restore the DB backup on the new SQL Server instance used for Dynamics CRM 2011.

3. Open Deployment Manager console (Start->All Programs->Microsoft Dynamics CRM->Deployment Manager)

4. Within Deployment Manager, go to Organizations->Import Organization…

5. Select the SQL Server instance and the Organization database to import. This corresponds to the restored DB on the SQL Server 2008/2008R2 instance used for Dynamics CRM 2011.
If everything is on the same box as this case, you may already have the values automatically inferred.

6. Then, the Import Organization Wizard will ask for some parameters regarding to the organization itself, such as the display name we want to use.

7. After setting the above parameters we will be asked about users mappings, this is, how the users which are present on the organization to be imported are mapped to CRM accounts.
If you are migrating from a Dynamics CRM 4.0 deployment which is on the same domain (as it is this case), you would prefer just to allow CRM 2011 to automatically map the users and create the new users as needed.
For doing so, just click on the first option and press 'Next'.

8. The result of the auto-mapping:

9. If the domain user account you are running the application is not mapped with any user with the System Administrator security role, you will be prompted with the following message:

This means you will have to manually map one of the accounts to the current user you are logged on. Do this by just selecting the user and clicking on 'Browse...' to specify the current user account.

10. On next step, some system checks are carried out again:

11. The 'Ready to Import' dialog comes up!. Just click on 'Import' to start the migration!

12. The import runs (it takes some time, depending on the amount of data and customizations)...

13. When the import process finishes successfully, it displays the following message:

14. If you want to set this imported organization as your default one, just get back to Deployment Manager->Organizations , refresh data (if you had the app open while importing) and then right click the imported organization and select 'Set as Default Organization'

If you are not going to use the default organization created during the CRM 2011 installation, I would suggest deleting it, also by right-clicking on the organization name.
15. Now, just enter the URL on Internet Explorer and verify your data and customizations!

At this point, you already installed CRM 2011 and successfully migrated an existing CRM 4.0 organization.