You have two options. 1.Upgrade the database first, by applying SP 5 to the current install and then installing BES w/SP5 on the VM and connect to the DB. Or you can install the SP4 version on the VM, connect to the DB, and then upgrade to sp5. you shouldn't have to reactivate at all. 3.6 to 4.0 was a pain because they were too radically different and not compatible.