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VSphere Client VSphere Server upgrade question from 4 to 5.5

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Hello,

 

Our VM  guy left so I have now been handed the tasks of taking over so please forgive me if this is a silly question.

 

We currently have Product: ESXi 4 Single Server Licensed for 2 physical CPUs (1-6 cores per CPU) with two Windows Server 64 bit 2003 servers installed and because there is a space limitation of 2 TB we need to upgrade (creating a separate RAID container is not an option).  My question is this, would 5.5 be an "in place" upgrade (like a firmware flash) and would we be ok on the Windows 2003 server side?


Also I'm confused on the licensing, what is the benefit of the free download over buying a license? I understand that after 60 days some features stop working but I can't discover which features would be gone.


Thanks for your help.


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