Questions to install 1.9 to 2.0

Hello everyone.
I have my site on the web and everything I have done is through the web portal.
I installed 1.9 with godaddy, using godaddy's install tool.
Ok, so now I want to upgrade.

Steps so far:
I backed up my 1.9 database. I created another database on the same server so I have 2 databases.
1: my original DB, not touched or tampered and my second created with same password.
Restored the backup I made of original DB and retored onto new DB.
So the content on that db is my original website.
Created an application root inside of the IIS separate to the directory where my website resides.
Adjusted file rights to have read and write
Downloaded and backed up the full NOPCOMMERCE site of original 1.9
For explanation purposes:
...
/nopcommerce/ (my original folder with 1.9 unedited untouched for JIC)
/nopcom20/       (new folder with app root in IIS already done)



2 questions on procedure:
Question 1:
Copied 1.9 folders backed up from nopcommerce into new folder on webserver
Then copied files from 2.0 onto the same folder.
I did this becasue how else am I going to get my original content back in?
What I am concerned about is my "about us:. "My edited homepage", "contact us", "faq", "news" and "blogs".
I also saw a difference in folders plus a lack of the install folder.
Now I need to run a script on the DB, can I do this from the webadmin?

Do I stop, clean out the webfolder again.

Or:
Question 2
install 2.0 contents on webserver with folder completely empty.
Run script using webadmin or SQL managment studio 2008(both my dbs are 2005, but as I understand 2008 Management can open 2005 dbs.)
Then try logging into new site
If this is the procedure:

Where is the install folder so I can tell it what db and server to look at?
Where do I edit so it can attach to new db?
And how do I get my existing pages I have modified to go into the new 2.0 page?

Please answer each question as completely as possible. I tend to overthink everything, and yes and no or soft replies will confuse me more.

Thanks and grateful.

This is my latest video for the 1.9 upgrade to 2.0 hope it will be helpful.