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No, you don’t need to uninstall Picasa before upgrading. Your pictures are stored on your computer’s hard drive separately from Picasa. Picasa is just software that works with the pictures it finds on your computer.
Here’s a video specifically on updating Picasa:
Please also watch the 8 video series on organizing
The more you understand about how Picasa works, the easier it will be to manage your pictures.
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