Hi Mark -

It's not an especially intuitive procedure and has a few red herrings thrown in.  From memory, here is how we did it:

--Install DS on the new server, and launch DS.  It will ask for configuration - take this up to the part where it wants a license. Also change the app pools to local system.  We then created a domain account for the DS Service and made that account a local administrator. For SQL Server we gave this account DB Creator rights.  (There are a lot of permissions and rights that have to be set properly and it is not obvious which right and which user is causing any particular issue. As a result we probably granted too many rights, but at least things eventually worked.)

--Open the License manager and detach the LM database. Stop the LM service.

--From the LM server, copy the entire folder, C:\ProgramData\LicenseManager and move it to the DS Server.

--At the DS licensing screen, navigate to the LM folder.  Hit Ok or Import.  We got errors at this point, and found we had to activate using the master key.

--When we opened DS it had in fact imported all the settings from LM.

--Every product licensed by LM/DS had to be re-licensed.

Feel free to add your own notes, as there may be some parts of our experience that are unique to our environment.