I think you are confusing the generation (2/3) of your navigation hardware with the most current version (7.1) navigation software.
But the answer would be yes, you can upgrade directly to version 7.1 on your generation 2/3 system (doesn't matter your current software version).
Do you guys know anything about the non-OEM discs for sale :
http://cgi.ebay.com/Lexus-Toyota-Navigatio...1QQcmdZViewItem
Also, Is the dvd inside the nav system in the trunk ? Is it easy to replace ?
Thanks!
Art Beall