Right now we have LMS 3.0.1 version. When I go to software update in CS, there is no update for current installed software. I notice like DFM right now has 3.2 version. Mine is still 3.0.1. So does that means I can't upgrade to 3.2 or 3.1 with LMS 3.0.1 bundle?
As I said, to get 3.2, you need to download the eval from http://www.cisco.com/go/lms . That eval can be installed over 3.0 to get you a licensed version of 3.2.
With LMS 3.0.1, you can move to DFM 3.0.5. But you still have LMS 3.0. You can download 3.0.1 from http://www.cisco.com/cgi-bin/tablebuild.pl/lms301 . If you wanted to get DFM 3.2, you would need to upgrade to LMS 3.2. You can upgrade to 3.2 by downloading the eval from http://www.cisco.com/go/lms . When you install 3.2 over a licensed 3.x, you will get a licensed 3.2.