Hi AS,
Yes, you are on the right track here
As far as Licensing goes,this upgrade also requires the Software Feature License.
Here is a clip that speaks to this issue;
Software Feature License
When you upgrade from an earlier release of Cisco Unified Communications Manager to Release 7.0(2), you must download and install a software feature license to activate the new features. This applies to CUCM 7.1 as well
http://www.cisco.com/en/US/docs/voice_ip_comm/cucm/rel_notes/7_0_2/cucm-rel_notes-702.html#wp616664
***You should receive a PAK with the 7.x Upgrade Media***
Use this procedure to obtain a software feature license:
Procedure
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Step 1 Navigate to the License Registration web tool at http://www.cisco.com/go/license.
Step 2 Enter the Product Authorization Key (PAK) that you received with your Cisco Unified Communications Manager upgrade.
Step 3 Click Submit.
Step 4 Follow the system prompts. You must enter the MAC address of the Ethernet 0 NIC of the first node of the Cisco Unified Communications Manager cluster. You must also enter a valid e-mail address.
The system sends the license file to you via e-mail by using the e-mail address that you provided. To view the contents of a software feature license, refer to "License File Contents" in the Cisco Unified Communications Manager System Guide.
Step 5 You must upload the software license file to the server with the matching MAC address that you provided in Step 4.
http://www.cisco.com/en/US/docs/voice_ip_comm/cucm/admin/7_0_1/ccmcfg/b02licfu.html#wp1067359
Here is a clip from a CCM Ordering Guide
"A license must be ordered for each server in a Unified Communications Manager cluster irrespective of server function (e.g. MOH, TFTP, warm standby server, etc). **This would be the "node" license. So you need two node licenses
It would look something like this;
1x CM7.1-K9-DL380
2x LIC-CM7.1-7835= these are the "Node" licenses
Hope this helps!
Rob