Clone production for dev't and testing

At this point the only ProductCart environment I have is my production store.  I need to make some substantial changes, and I'd rather do that in a development environment rather than risk effecting production during my coding & testing.

I know how to move source code.  I know how to set up IIS.  I know how to copy the production DB to my development environment.  What I don't know if there is any data I need to change in the DB (DML not DDL) or configuration to flag my local copy as "development".

I assume I should give my dev environment a different hostname/URL.  If it is easier / better / required for me to use the same FQDN and path for my development store I can do that -- but I'd need to be told to do that.

I assume I will have to use my purchased license information to make this development version of my store work -- and I do not want to risk having my real store stop working because EI thinks I'm trying to use our license multiple times.

I don't like implementing based upon assumptions, however.  Especially when a bad assumption may result in my production store getting shut down.

I did search the forums and knowledge base and couldn't find anything.  Does this information already exist?

I did those things -- and then when it came time to log in to the development control panel it said:

It appears that the store License Key has previously been registered and therefore cannot be used to activate another store, or that the domain name associated with this store is not the correct one. You will need to request a new license or ask Customer Service to unlock the existing license key for you.