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It cannot be installed on the same computer as v. 1.x (at least not within the same Windows installation), because v. 2.0 requires Windows Vista / Server 2008 or later and v. 1.x requires an earlier Windows version.
It cannot directly use a configuration file from v. 1.x, because v. 2.0 uses a configuration file in JSON format, where as v.1.x uses a configuration file in XML format. However Simple Failover v. 2.0 does include a tool which can convert a v. 1.x configration file into a v.