I have the same problem.
“… If no, there is something wrong with your PM2.0 installation. Version 1.1 must not be installed to convert diagrams.”
I uninstalled vers 1.1 and vers 2.0
I installed back vers 2.0
I still don’t see the dialog which would asks me for conversion from an older verison to PM 2.0
I have Win 2000 and Visio 2003 Pro