Hi BigY,
All it takes you to turn your forum into a valid license is to purchase a vB4 forum package, go to the members area and download the vBulletin 3.7.0 release, unpack and upload it to the live server overwriting the existing forum files.
After that you can start thinking of an upgrade. Before doing anything, perform a full site backup, including files and database, then a research on your forum mods to see how well they perform with newer vB releases should help you decide which vBulletin version to upgrade to.
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