It is always possible that side-by-side installation issues exist, and you should have the appropriate safeguards in place (e.g. backup, use a VM, etc.).
In my personal experience, it has worked just fine. For my Tech Ed presentation, I rebuilt my laptop with Visual Studio 2005, 2008 and 2010 all installed side-by-side on Windows 7 x64. I didn’t experience any problems.
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