> 1) What happens to the existing text data in records (and indexes) if I 
> check-mark "Unicode" in the Compatibility tab?

the data is unchanged but the index will be rebuilt the next time you open the 
application (structure+data).
behaviour of string-related features are all different in Unicode mode *if you 
use any characters other than ASCII letters*.
so existing data can be modified by running legacy code on such characters, 
after the switchover.

> 2) Will all text data in records (and also indexes) be automatically 
> converted to Unicode?

they are already converted to Unicode.
compatibility mode is effectively a layer on top of the actual data,
that converts to and from Unicode every time you access text.
that's why it's slow and lossy.
switching to Unicode mode means you do away with that layer and work directly 
with their internal representation.

> 3) How do I convert the existing text data in records (and indexes) to 
> Unicode?

you don't.



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