Complete information about updating an AppleShare File Server from version 1.1
to 2.0 is outlined in chapter 5 of the AppleShare File Server Administrators
Guide shipped with AppleShare 2.0.
In answer to your specific 1) Yes, the administrator will be prompted to prepare the volume(s) for use
with AppleShare.
2) No, the users/groups file will not be replaced and, therefore, will not
affect any folder access privileges.