I got an email from them about the non-upgrade pricing. Here's the text:
Thank you for your interest in our CoPilot products. Our CoPilot live/ lap top 7 software only is $249, the sofware with receiver is $399. Yes, our CoPilot software is compatible with 3rd party Gps receivers, meeting the NMEA 2.0 compliant standard. Please be advised however, that we do not test our software on any and for that reason we cannot guarantee or support it. We do offer a 30 day money back guarantee.