I made this jump when I upgraded all the licenses at my former employer and it was hands down much more stable and nice than the master disk method. If you upgrade to a concurrent license, then you can load the licenses onto a server and share them out across your network, or even 'borrow' a license (temporarily load it onto a laptop). Even without the dongle, if you need to move the license to a different machine or recover it, Rockwell made the procedure fairly painless. The nice part about the dongle is that you can install Logix 500 on as many machines as you want and just move the physical dongle from one machine to another to move the license. There are 3 choices for this: a NIC (network) card, the hard drive serial number, or a special USB dongle that AB sells. The license file is locked onto a hardware serial number. Once you've got an FTA key, everything can be done online.
You give them the old key disk serial number and then they ship you a piece of paper. You can request a free upgrade from Rockwell for an FTA-style key.
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