Have a few more questions:
1) I watched the upgrade video. It sounded like even if we keep our old URLs, new ones are going to be added. Is that true? It seems like the only choice is doing the 301s. Stefan said that it should not change your ranking, but changing over 3000 URLs is a lot of change for Google.
2) Above you created our settings? What is that going to do for us exactly?
3) I could live with the product URL change (although they are just begin to rank in Google), but will our category page URLs change? Can you look at our category page and let me know?
What I am really asking is this: Is there a way to keep our old URLs with V3 and not create duplicate content?
Once again, thanks for your help!