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Help For A Whs V3 User Moving To Whs2011

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I have a MediaSmart EX470 with the ram upgrade and plan on upgrading to WHS 2011. I have 2 - 2TB drives and 1 - 1.5TB drive installed, along with the .5TB drive that comes standard. My question is:

If I follow the instructions provided on this site for the upgrade, can I:

A. ditch the .5TB drive for another 2TB (or even 3TB) primary drive?
B. will updating the primary drive automagically format the other three drives (thus erasing my data) or will the data remain intact? (either way is fine, I have the data backed up on externals I just want to know my options)
C. using the box primarily for music/movie backup/storage and streaming to my PS3, iPad/iPhone and computers when on travel, this seems like the easiest and least expensive option (price of whs2011 and whatever primary disc upgrade I pick up), am I missing anything?

thanks in advance. I did a search and could not find the answers.

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