Bugger, MR logged me out after typing up this post.
In a nutshell, if I remember correctly, FCE 3.5 comes with two LiveType DVDs. The media on LiveType Media DVD 1 does not come with FCE 4, while the files on LiveType Media DVD 2 come with FCE 4 (or, at least it seemed to me after a quick glance). Open the installer on LTM DVD 1 with Pacifist, select the parent/top install package, then click install. After it extracts the files, it will ask if you want to replace the existing ones. Since I wanted to keep the newer FCE 4 versions of those files, I clicked the box to remember my selection for the rest of the installation, and clicked no. Now you should have more files in your LiveType. You can browse the installer for LTM DVD 2 if you want to make sure that there aren't any files on there that you missed, but I don't think there are.
Hope this helps.