Could anyone please let me know if I could safely install VS-2008 on a machine which already has VS-2010?
It's unlikely to cause problems as VS 2010 is primarily designed for developing with the .NET 4.0 framework (although multi-targeting is implemented, like it was in VS 2008, just in a better manner). I (and no one I work with) ever had a problem with VS 2005 & VS 2008 installed side-by-side.
Install Visual Studio versions side-by-side. You can install Visual Studio on a computer that has an earlier or later version of Visual Studio already installed.
However, in some specific cases, it might be helpful to install different minor release versions of Visual Studio side-by-side. For example, you may want to have both 16.9.3 and 16.9.4 on the same machine.
Visual Studio 2010 support multi-targeting as in previous Visual Studio versions however it is much more advanced in 2010. You can easily upgrade you project to 2010 by using the project import and then target whatever .NET version you need.
Yes. I have done it many times. They install side by side. In fact, as Tim mentioned in the comments below, all versions of VS are designed to be capable of concurrent installs. Quite handy.
UPDATE: Hans Passant brings up a good point in the comments below and that is that the last version of VS that you install will grab the file associations. This has personally never been an issue for me but you will want to be aware of it. Thanks Hans!
You can restore file associations in Tools > Options > Environment > General > Restore File Associations
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