Answer:

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Note: A successful installation overwrites existing files. It is your responsibility to make a backup of your existing Foxhound installation if you want one. The simplest way to make a complete backup is to stop the Foxhound engine, then make a copy of the entire Foxhound2 folder and subfolders... do this BEFORE installing the new version of Foxhound.

By default, Foxhound is installed in this location on Windows XP:

C:\Documents and Settings\All Users\Application Data\RisingRoad\Foxhound2

and on Vista and Windows 7 it is here:

C:\ProgramData\RisingRoad\Foxhound2

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What you do next depends on which dialog box appears...

If you see a dialog box that looks like this, you have to run the Foxhound "unsetup" process first and then run the Foxhound InstallShield setup as described below:

The unsetup process will not delete your Foxhound database; for more information see Another version of this product is already installed.

If you see this dialog box, you can proceed with the reinstallation:

When the InstallShield process reaches the end, click on the Post-Setup button to continue the installation.

This part is critical; if you don't let the post-setup process run, the old installation of Foxhound will not be replaced:

The post-setup process will ask how much data you want to preserve; just press Enter for ALL data:

See also How do the different FOXHOUND2UPGRADE values work?

If you see this dialog box, click on Remove to run the Foxhound "unsetup" process, and then run the Foxhound InstallShield setup as described above.

Do not click on Modify or Repair; they won't damage anything, but nothing will happen when you click on the Post-Setup button at the end of Modify or Repair process:

See also...
How do the different FOXHOUND2UPGRADE values work?
How do I install Foxhound?
How do I install a new version of Foxhound?
Another version of this product is already installed.
Why is it called "unsetup" instead of "uninstall"?
How do I remove Foxhound from my system?
How do I backup my Foxhound database?
How do I backup my Foxhound database on a regular basis?
How do the Foxhound backup shortcuts work?
Help - Introduction - Backup and Restore
The $backup_foxhound2.bat file looked for a path specification in the FOXHOUND2 environment variable and it was empty.