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1.) You can only upgrade if the official license also would have been valid for 4.2.5. As far as I know it can be seen if you install or upgrade with somebody else's files. 2.) Yes, basically the forums need to be installed on the same domain as the one registered with the customer code. However it's possible to change the installation domain. You can easily change the installation domain name in the member area. This way you can install on any domain you choose. Just take care that on any server only 1 version of your installation files exists and the correct installation domain is noted in the members area.
No the renewal cost for the forums only is $ 45 dollar for 6 months. So you still have half of the renewal period for free at the moment. Downloads and Gallery is $ 10 renewal for 6 months and Pages is 15 dollars. So the total renewal costs for everything except videos in april would be $ 90 dollar. From the Invision Pricing page: So you won't get billed, it's your own choice if you want to update in april of update later. And the software keepsp functional. You can always give him a decent offer and see if he accepts it.