StumpyV
Kind of interesting that this thread is still going on and it is the same info going back and forth.  Toontracks fault, Cakewalks fault.  I am at a point where I just don't care who's fault it is.
 
I do have one alternate fix I am thinking of trying.  I recently upgraded from X1 to X3 because of the ridiculously low upgrade price Cake just offered (thanks to Cakewalk for doing that by the way). 
 
Anyway I am going to try to install a second instance of ezdrummer1 in a different file than the original install then apply the upgrade to the new file path of the second ezdrummer1.  Hopefully it will only override the new install.
 
Then I am going to try to get ezdrummer2 to upgrade the second instance of ez1 and put that .dll in its own folder and direct X3 to scan that folder for the vst (and not scan for the original .dll). 
 
X1 will still be scanning for the original EZ1 .dll and X3 will scan the new folder for the new EZ2 .dll.  Not sure it will work but who knows.

That is either brilliant or a recipe for further disaster. 

StumpyV
Kind of interesting that this thread is still going on and it is the same info going back and forth.  Toontracks fault, Cakewalks fault.  I am at a point where I just don't care who's fault it is.
 
I do have one alternate fix I am thinking of trying.  I recently upgraded from X1 to X3 because of the ridiculously low upgrade price Cake just offered (thanks to Cakewalk for doing that by the way). 
 
Anyway I am going to try to install a second instance of ezdrummer1 in a different file than the original install then apply the upgrade to the new file path of the second ezdrummer1.  Hopefully it will only override the new install.
 
Then I am going to try to get ezdrummer2 to upgrade the second instance of ez1 and put that .dll in its own folder and direct X3 to scan that folder for the vst (and not scan for the original .dll). 
 
X1 will still be scanning for the original EZ1 .dll and X3 will scan the new folder for the new EZ2 .dll.  Not sure it will work but who knows.

 

bapu
That is either brilliant or a recipe for further disaster. 

At least you will know who's fault it is when it goes wrong.
I think Cakewalks explanation was pretty comprehensive.

I don't think stumpyV will be able to authorize the new copy, making it useless. And I also think that when EZD2 does it's scan, it will see both old/new ED1 .dlls and may not allow itself to be installed.

Well, I am sorry to report that loading 2 instances of EZdrummer1 won't work because EZ1 does not install as a program but just as a vst "shared" as DeeringAmps stated.  I tried several ways to try to trick the install but there seems to be no way to instuct EZ1 where to install the vst and then select a second installation place.  I am going to keep trying to see if I can get this setup to work but I am not optimistic about it working.  Maybe it could work with a dual boot machine but I am (so far) not going to reformat my system to have a dual boot.  Ah well, at least I have X3 running now.  Too bad EZ2 will be sitting in a download folder for who knows how long.  If I had know I might have put in some extra cash and gotten Addictive Drums.  But I do love EZdrummer and I am so disappointed.
 
Good luck to everyone else working on this problem.  I will check in periodically to see if anyone has come up with any other solutions.