Mutliple Versions
You can also install any new version of Xcode into whatever folder you want. That way you can have as many versions of Xcode as you want. Just be sure to start the version that you want to use.
To install into a unique folder, simply specify that folder during the install process.
For example, I have about five or six versions of Xcode installed in these folders:
Developer
Developer 2010_07_15 Xcode 3.2.3 SDK 4.0.1
Developer 2010_11_22 Xcode 3.2.5 SDK 4.2
Developer 2011_03_03 Xcode 4 GM 2 SDK 4.3
Developer 2011_03_09 Xcode 4.0.0 SDK 4.3
Developer 2011_03_24 Xcode 4.0.1 SDK 4.3
Developer 2011_05_01 Xcode 4.0.2 SDK 4.3