As far as setting up the servers, that's what you're going to have to do. When you say "start the upgrade process" that's the question. Since you're installing new servers, your choices are to detach the databases from the old server, copy them to the new locations and attach them, or run a backup and a restore. Personally, I'd strongly suggest going with the backup and restore route. That leaves the existing databases in place in case something goes wrong.