V8.1 is currently running from the "bin" folder under I believe V7.5, as that was the indicated location for installation for dual version scenarios. So will V8.2 operate correctly under Server 2003 R2 with Pervasive V11, and will it upgrade correctly with V8.1 in the "bin" folder?

A - If you use Windows 2003 as the Elliott database and file server only, in that case you could run Elliott 8.2 on eligible workstations. The key is Elliott 8.2 requires Microsoft .NET 4.5 to run, and .NET 4.5 is not available for Windows 2003 and Windows XP machines. So while your Windows 7 and up workstations can run Elliott 8.2, you will not be able to run Elliott 8.2 on your Windows 2003 server console or through remote desktops. This is not an ideal situation because we recommend that you run deferred processing on the server console since it is much faster. But you can make this work if you so desire. 

Our suggestion is to upgrade the Windows 2003 server. After all, Microsoft phased out support for that OS quite some time ago.