Currently Being ModeratedFeb 21, 2013 4:24 PM (in response to Goody7)
Erase and install will erase everything on your hard drive, all applications and all data. Before doing the installation it would be best to have an external drive to backup the contents of your internal, startup drive. That way if you do a clean install and loose anything you can bring it back.
Currently Being ModeratedFeb 21, 2013 5:37 PM (in response to Goody7)
Please note that your 3 GB of RAM is not going to result in a good experience with Lion as it is a bit of a memory hog and 4 GB is a realistic minimum.
As for copying your applications from one Mac to another: have you made sure that they are compatible? And, do they require more RAM than what you have? Using something like Creative Suite, I would suggest more than 4 GB RAM.
I don't know which version you have, but here are the requirements for v. 6:
(Note: 8 GB RAM recommended)