jgmdesign 
Ok, I finally decided to bite the bullet and 'upgrade' Studio and lose the last remnants of Atmel I have grasped on to for so long.
But when I started teh update process I see this:
Does this mean that the GCC compiler will be removed and teh XC8 compiler will be put in place instead?
Sigh......
JIm
meolsen 
Nope, both are installed (you can cancel the xc8 installation if you don't want it, Studio will continue to install no matter what you choose int the xc8 installer)
jgmdesign Studio will continue to install no matter what you choose int the xc8 installer)
If I click CANCEL the whole installation stops and exits. If I click INSTALL, it starts installing the XC8 compiler. If I click CANCEL while this is happening the install quits and exits
Jim
It's been awhile since I installed MCS7, but I recall it installs XC8 then asks if you want GCC, you can then choose which compiler you want to use when you start a project...
Jim
It used to ask which one to install, but I think it now defaults to XC8, and GCC is optional
meolsen If you cancel the XC8 installer (which pops up separately), then the Studio installer should just continue on its merry way... (of course, don't cancel the Studio installer, as that will cancel the Studio installation)
clawson 
Jim the upshot of it adding XC8 is simply this:
When you come to create projects you now get choices between XC8 projects (green) and GCC projects (orange). I don't know when my copy got the XC8 option but to me it does not really matter as I never have and never will choose to use it as long as GCC exists.
A couple of things are noticeable:
1) if choosing C++ then you really have no choice - XC8 does not offer C++
2) shame they couldn't have delivered a bit of consistency in this:
"XC8 C Application Project" versus "GCC C Executable Project". The middle word should be consistent. "Executable" seems less appropriate than "Application" as it somehow seems to imply OS based executables rather than hex/binary flash images?
"XC8 C Library Project" versus "GCC C Static Library Project" - either both or neither should contain "static". Perhaps its obvious/implied that for AVR it HAS to be static - there's no such thing as dynamic libs in the AVR world. Whether that means it should be spelled out or not I don't know but the entries should be consistent at least !
jgmdesign Ok, so The install went through, and the pop up regarding adding XC8 does appear, but the wording and the way the thing is set up is somewhat misleading. If you look at the screenshot in my OP it reads >>To me at least<< that when I click INSTALL, XC8 will be installed.
Now, when the pop up that gives you the chance to not install XC8 appears, it would be helpful if it explained that to not install XC8 simply click cancel.
Unless the evil overlords did this on purpose to get you to install XC8 subliminally....
Either way, my last token of Atmel is now gone.
Thanks all.
Jim
EDIT:
Post #2 and #5 are teh solutions. I will mark the solution here but give credit where credit is due of course
Unless the evil overlords did this on purpose to get you to install XC8 subliminally....
You will be assimilated sooner or later
jgmdesign Resistance is Futile, you will be compiled.......
Then again:
Jim
