I also had free notes which I started with Roots 2 or 3. I transferred my UFT to TMG about a month ago. The free notes get put into Master source list, but the problem is that they will not print out as is. I just spent three weeks editing all of mine.
Cemeteries transfer over fine and are put in master place list. It is like a database and you can edit them on this list, but a good thing to check your places over in UFT that you are familiar with.
I have my people that I don't know their surname listed as 'surname Unknown'. They transferred just fine.
One glitch I found was that in an event that I had 'before' a date it was changed to 'say'. I reported this and it is suppose to be corrected in 4.0a. I might add that you should be reading TMG-L because you will see messages about UFT to TMG. Also don't be too quick to delete UFT because I have found it much easier to do a search in UFT on something than in TMG.