UFT version 2.x will work on Windows ME and you can upgrade to version2.8 for free from the UFT web site. The URL for the upgrade is http://www.uftree.com/UFT/Nav/ufttech.htmlhttp://www.uftree.com/UFT/Nav/ufttech.html
This location also has all of the upgrades for all versions of UFT. You can update UFT 3.0 to 3.1, you can get the IE 4+ Explorer update.
You can not get version 2.9 or version 3.0 as upgrades. These were only available for purchase.
If you are upgrading 3.0 you need to know if you are upgrading a version that came as 3.0 on a disk or if you are upgrading a 3.0 version that was originally a version2.x upgraded to 3.0.
I personally have moved on from UFT to TMG. I believe that in the near future you will find that UFT will no longer work on one of the new operation systems (This has not happened yet).
You can read the UFT data directly into TMG using their process know as Genbridge. You can read either a working UFT file or a backup of a working UFT file. You do not need to have UFT on the computer to read the file, it can be read from a floppy directly into TMG. The process will not affect the UFT file in any way, it will remain in the same condition it was in prior to the transfer and can still be used in UFT.
There are several options you must choose when you import a UFT file into TMG. I would suggest that you start with the default options and if you do not like the results, import the data again and change whatever option you desire. You can import the same file over and over until you get what you like without harming your data in any way. It is a real neat process.
TMG is available at http://www.whollygenes.com/http://www.whollygenes.com/ and there is a chart available at http://www.whollygenes.com/html/uft2tmg.htmhttp://www.whollygenes.com/html/uft2tmg.htm that describes the UFT data elements, which ones will be imported by GEDCOM, which ones will be imported by Genbridge and where they will reside in TMG. I think you will be surprised at the amount of data that GEDCOM does not transfer.