I have been happily using fcp6 now for years but now I'm editing more xdcam footage and I was thinking of upgrading to the fcp7 version as it has more options for this codec.
I can get a full version of 7 from a mate of mine who now uses premiere, can I install this or would buying an upgrade version online be best?

At this point, any LEGAL version of the software you can get is what I would grab...

And assuming that your hardware will support it, I found the FCP7 upgrade to be WELL worth it. Just remember to keep your FCS2 discs around so you can install LiveType if you use it as FCS(3) doesn't contain LT.

To the best of my knowledge, Apple uses the network to see if two concurrent incidences of the same serial number are running. This became an issue for me once when I was running FCP6 on one Mac and FCP7 on another on the same network - because they were both upgrades and I had used the original serial number from my FCP1.0.2 install back in '99... had to shut one down to continue.

The legal issue was my concern also in this case, but it has been all un-installed on his system and he has unregistered it with Apple.
I'm glad to hear its a food upgrade as it does a few things like background sharing etc were it's still possible to edit on the project, things like this will be a brilliant time saver. The pro-ress options are better also, as I only have proress or the HQ option.
Thanks for your feedback Shaun

I realized I needed to upgrade when I found it difficult to manage a project I was cutting in FCP 5.1. For example, I couldn't export in XML to any file readable by PrPro. Exporting to distribution formats was looking risky as well, all dependent on the one machine I had running this software.
I like to be very scrupulous about licensing but feel Apple is putting my work at risk by ending its support of FCP 5, 6, 7.
There is a potential for loss of one's own property and equity. I've been working for a couple of years on a project started in FCP 5.1, and my editing time is my equity, not Apple's.
I did install FCP 7 on a new machine so I can maintain my own work. The update to 7.03 seemingly still works.
Won't comment on serial numbers but it would be literally criminal of Apple to not only refuse to sell but to deny access to FCP 7 to people who have initiated projects in this and earlier FCP versions.
Copies of FCP 7 are available for sale on sites such as Ebay, with legal serial numbers.
It is weird that the Coen brothers are cutting current films in FCP 7.
How to keep cinema projects archived, editable, and available is an interesting issue in these times.
Used to be a matter of owning and protecting the original film--now software publishers are getting involved in our intellectual property.

You'll love FCP 7. And you won't have to buy a new computer as you would FCP X.

Lots of things were fixed in Final Cut Suite 3. Since it's a full license, you can install over your previous FCP and it should keep your LiveType, favorites and migrate your plugins. I made the mistake of running FCP cleaner and lost quite a few free plugins I had collected over the years.