I'm curious what you think about doing this... releasing an app free, to give it some publicity... then eventually making it paid... have any of you tried this? What has been the response? Or is it better just to have a lite version and a paid version?
If you simply change your free app to paid, you lose out on potential sales from the installed user base. And you'll also get some confused users complaining that "what was once free now costs money" not realizing that if they've ever already downloaded it, they won't be billed again. Your best bet is to create a paid version, include incentives to upgrade, and then push out a lite upgrade that tastefully upsells to it. You'll get a nice spike of downloads from the free advertising thanks to upgrades.
You can go the paper toss route. Keep the free one free with ads and another version paid without ads. Don't make the free one paid as you'll lose any chance of putting ads in it ever.