Xcode 101: Installing the 3.2 SDK alongside the 3.1.1 SDK
When given the option of where to install, click on the Developer folder to reveal the pop-up shown here to the right. To create a new folder/location choose "Other..." and use the standard file browser to create and select that location.
I personally use a named folder for all beta installs. My 3.2 beta is located in /Developer32 and I used the standard /Developer path for my 3.1.3 SDK update. Both SDKs coexist in peace with each other, although I did have to assign separate key macros (I'm a Quickeys addict) for normal Xcode and Interface Builder (in /Developer/Applications) and the beta versions of the same (in /Developer32/Applications for me). Having both SDKs available and separate will help you make sure you can test and code in both environments quickly and easily.
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