1) No. You could just use a trial version for 4.0, and upgrade it from 4.0 to 2011, then change keys
2) There's only legacy support for assemblies targeting CRM 4.0. This means that you'll need to update your code. You would probaly need to rewrite some of the workflows for 4.0, as there's some issues upgrading them
3) Reports should be fine. The old reports will be kept along with the new ones, so it will seem like duplicates
4) They will import fine from 3.0 to 4.0, but you should use the Javascript conversion tool for the upgrade from 4.0 to 2011
5) Yes, you will have to upgrade as there's different endpoints. See
Codeplex for more information
6) You'll need to upgrade it to CRM 4.0 as a minimum, as CRM 2011 only has legacy endpoints for CRM 4.0
7) There are som differenses between the online and onprem versions. You cannot do an direct upgrade, you will have to upgrade locally and then import everything to CRM online. Furthermore, custom workflow assemblies will not work. ISV Web applications will
need to be rewritten to use the web resource approach. There's no direct database access, so if you have anything that requires this it will not work anymore. And you cannot at the moment use AD authentication
8)No, you cannot use your existing database. CRM Online will store it database in one of Microsoft's datacenters, depending on where you are located
