>1. I use VFP 7. Do I have to recompile the project?

It never hurts to recompile the SDT project in your version of VFP.

>2. I want to run paralell test version. Can I just create a new folder and point to it it in vfpstart.prg

You can create a new SDT folder and copy your current version of SDT into it. Then just update one of the SDT folders with the new version of SDT.

>3. Besides recompiling applications, and copying new meta files is there anything else I need to do on the client machines/server?

Also include the DBC/DCX/DCT files. Make sure you run the SDT Explorer on your database and current set of SDT meta files BEFORE shipping to customer. One of the SDT meta files undergoes a structure change. This may also affect your use of the previous version of SDT in the copied folder.

FWIW, I just bit the bullet and upgraded to SDT 6.1, recompiled my app, then tested the Reindex, NeedUpdate, Update and Repair functions of SDTwith no problems.