RMS upgrade from 1.3 to 2.0 and migrating to new hardware

I have a 2 lane install running RMS 1.3 refresh on XP sp3 using MSDE that has finally agreed to replace hardware /software to be PCI compliant (and before the hardware fails)

1. Should I install 1.3 on the new hardware (Win7) restore their data on sql express and then upgrade to 2.0? Or upgrade then migrate?

2. Is there anything I need to do as far as their license key for the migration/upgrade

3. Other than their memorized reports and pictures is there anything else I should move from the Store Ops folder?

Thanks in advance for any advice or suggestions

Rob