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Both SDKs can be installed on the same machine.
They should not be used at the same time.
The SDKs work with different versions of VisualDSP++.
The Z4 SDK switches automatically to the correct version.
After working with Z4 SDK and before working with the Z3 SDK the switchtoZ3.exe should be executed.
This file can be found in <LabVIEW 2011>\Targets\Schmid\Toolchain.