>1) Can I run both vfp5 and vfp8 development/runtime on the same computer ?

Yes, in different directories of course.


>If so, How would a shortcut to a vfp5 (or vfp8) compiled executable know which vfp runtime version to run ? If so, how does it know that ?

The shortcut doesn't know. VFP does. No problem.


>2) For updating customers in the field, do they have to uninstall vfp5 before installing the new vfp8 runtime ? (if not, is it ok to have vfp5*.dll files remain in the windows\system32 folder).

No they don't. Runtimes for both can coexist. Each EXE will use the runtimes it needs.


>3) And the LAST but not LEAST, Should I distribute the vfp8 runtime now, or wait for SP1 ?

Don't wait! VFP 8 is probably the most stable VFP version ever.