What **coldrake **& wdupre said is correct because I did sort of what they suggested. Here's what I did and works.

1. If you have V4.0 you can keep her installed since she didn't have an !DAZ folder.

2. If you have V4.1 installed open up Poser or Daz and load V4.1 and load the morphs++ now save that model to your library, now do the same if you have muscle morphs and creature creator morphs. This way you will have minimum of 3 new basic V4.1 models that you can use if you want that will work along side V4.2 with no problems, just like if you were clicking on the original Daz V4.1 icon but now the morphs are already installed. All with different names obviously like I use V4.1Mod for example. Now you can do as told by Daz and uninstall V4.1.

3. Install V4.2.

4. You can have V4.2 in an external runtime. Just during the installation (Poser installation option) you install her in the main application Poser program folder then move the folders over to your external runtime after the installation is done. You need to have a copy of the !DAZ folder in the main poser program for it to run as efficient as possible. I keep a copy of the !DAZ folder in my external runtime just for when I backup my runtimes its an easy way to make sure to have a copy of that folder also, but it is important to have one in the main application Poser program folder.

5. The only things you need to reinstall for V4.2 is the Base, Morphs ++, Muscle Morphs, Creature Creator Morphs if you have any of these.

6. When you install the folders to the main application Poser program folder but want to move them to your external runtime the files you want to move are in the geometry folder, character folder, pose folder and texture folder.

In the Geometry folder you will look for Null.obj and the DAZPeople folder both get moved over.
Runtime : Geometries : DAZPeople

In the Character folder you will move over V4.2 files.
Runtime : libraries : Character : DAZ People

In the Pose folder you will have a main folder with several sub folder depending on which of the different Morphs I listed above you purchased and reinstalled but will go basically.
Runtime : libraries : Pose : DAZ's Victoria 4 : General Poses
Runtime : libraries : Pose : DAZ's Victoria 4 : Magnetize Clothing
Runtime : libraries : Pose : DAZ's Victoria 4 : MATerials Samle-Res

In the templates folder you will move the templates folder.
Runtime : Templates

In the Textures folder you will move the DAZ folder.
Runtime : textures : DAZ : Characters : MilWom : V4

These are all for the V4.2 Base you can get the exact files from the readme's if you are unsure or if you want I can post the other ones also.

I also found that if you have a previous version of Poser you can do as suggested by DAZ is to install V4 in the main application Poser program and leave it there, but I did that for V4.1 as well as what I have suggested above. Because I was experimenting in the first few days to see what worked best cause I wanted to keep V4.1 so I could create new V4.1's will working alongside V4.2 and didn't know which one was going to work the best, but found out either way that I had described will work out. I hope this helps everyone out and if you have any questions don't hesitate to ask.