Hi Bob- I was typing while you were posting, so this is for Wendy.
My first UFT purchase was of version 1.0. I took it back. A week later I studied the FTM box very carefully and then bought UFT 2.0.
As I understood the situation in the summer of '97, UFT 1.0 was released as a 'crippled' version of UFT 2.0. The distribution CD included all the program files for version 2.0, but the marketing philosophy was that you would get hooked on UFT 1.0 for $19.95 and then send in more money for the code that would unlock all the UFT 2.0 features.
Then they dropped it and didn't like to admit that UFT 1.0 even existed for a year or two.
At this time, the UFT 2.8 upgrade reportedly cannot be installed over 1.0, and later UFT 2.x/3.0 versions have been discontinued and are extremly rare at retail. So you don't have many options to upgrade and stay with UFT. John