Here is good way to upgrade an On-Premise Microsoft Dynamics CRM 4.0 to CRM 2011. This only applies for the Non-In Place Upgrade scenario (keeping the original environment intact).
- Make a backup of the Microsoft CRM 4.0 database and copy it over to a new Microsoft CRM 2011 environment.
- Perform an Import Organization and Upgrade via the MS CRM 2011 Deployment Manager
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