The purpose of this paper is to assist readers in a successful upgrade from Microsoft CRM 1.2 to Microsoft Dynamics CRM 3.0. The paper reviews the key components one should prepare in their environment that are important for a successful upgrade to Microsoft Dynamics CRM 3.0. The paper lists best practices that should be followed for the Microsoft Dynamics CRM environment. If the environment does not meet the criteria, a person should still experience a successful upgrade to Microsoft Dynamics CRM 3.0. The recommendations discussed in this paper will greatly improve performance of the Microsoft Dynamics CRM environment.