another 32 -> 64 bit upgrade question

[Art Alexion]

Running up to date kubuntu 8.04 32 bit.  Seems like most 64 bit app issues 
have now been resolved.  Would like to upgrade to 64 bit to access all 4GB of 
my RAM, and any other advantages.

Questions:

1. Is there a way to upgrade in place, or do I need to do a fresh install?

2. If I do a fresh install on another drive, can I just copy my ~/ directory 
over?

3. Will I encounter any unforseen issues with kvm virtualization (with the 64 
bit 8.04 Kubuntu being the host)?
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