Do I need to remove my Snow Leopard versions of Xcode Prior to installing the Lion versions, or is it simply an upgrade process like other Xcode installs?
I have no idea what you are talking about. I downloaded and installed Xcode from the Mac App Store both prior to my upgrade to Lion and afterwards. Installing Xcode this way just works and works well.I tried installing 4.1 over 4.0.2 in the Developer folder, and the Installer did not like that at all.
Best to clean out Developer folder before doing an install.
You might as well toss old XCode, or relegate it to a Snow Leopard only disk. It will not work correctly alongside 4.1 in Lion.