Joe, First UFT 3.x will work with XP. Though you should be using the upgrade which makes UFT 3.1. If you don't have the upgrade file I have a copy that I can send you. That is if www.UFTree.com (I think that is the URL) is working yet. Many are still using UFT and don't at this time plan on changing. Some UFT users jumped ship to take advanage of the discount that TMG offered 2 years ago. Some of those are now major users of TMG and others are still waiting for the program to be finished before dropping UFT.
With GenBridge you can import into TMG your UFT data without loss of data. With GEDCOM you lose the Detail A & B fields and some other items.
It is hard to replace the Family Journal report that UFT puts out. This type of report is not on the list of reports for TMG yet. Legacy doesn't put the "extra" event sentences with the BMDB events. You really have to check the reports for yourself.