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Xcode offers side-by-side install. However, I haven’t tried it but now I’m being pressured to test the new beta SDK (for future projects) while keeping my current SDK environment (for current production). So I’m considering a side-by-side install.
Currently Xcode 4 is not stable enough, but before to install, I want to know possible issues with a side-by-side installation. I’m preparing Xcode 3.x (legacy) and Xcode 4.2 (beta) addition to current 4.0.x.
You shouldn’t have any difficulties. I’ve been running side-by-side installations of Xcode for years now, no problems.
Helpful hint: Modify the icons for the different Xcode installations to differentiate between SDK versions. Mixing up beta and production environments has caused issues for me in the past. Cached link to my post on the subject, since my blog is currently down.