How should I install 1.01? Should I install it on top of the old version? Should I manually delete the old version first? (I think I recall reading somewhere that the uninstaller was disabled for 1.0)
Will my patches/banks be retained?
The easiest way I suggest is to make a backup of your "KarmaFX" folder, e.g., by moving it to your desktop or someplace safe.
Then install v1.01, (and perhaps the plugin pack if you had that too).
If you made some patch changes, new banks, presets, etc. you can copy them over manually from the backup after installation.
Alternatively, you *should* be able to install on top of an existing folder too, like I suggest here: http://www.karmafx.net/forum/viewtopic.php?t=368 , but it is a good idea to make a backup just in case. Especially if you've made some patches that are stored in the banks on disk !
Hope this makes sense.
1) Your patches in the banks will only be retained, if you actively disable patch bank installation when installing. EDIT: Or if you've made a (differently named) bank of your own.
2) Patches are by default stored when a song/track is saved to disk, i.e., inside the track itself. Therefore, you should never loose patch settings stored in your tracks due to an installation.
3) Rule of thumb: If in doubt, make a backup ! I would simply hate if somebody loose some of their production work because of this.