upgrade and migrate virtuemart from 1.1 to 2.0

[ncpl.ushamadhuri.vsp]

Hello,
I am working on virtuemart 2.0 for my new site. I had an old joomla site with virtuemart 1.1 having about 500 products in it.
How can I migrate all this products to my new site?
I have seen migration option in virtuemart 2.0, please check the attachment.
I have vm 1.1 in another server, how can I relate these two? Please explain.

Thanks in advance.

[attachment cleanup by admin]