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I wouldn't have a clue why you would first need to do a full decryption.
It might be that this is a feature for people who are using an OEM version of windows that comes with a special recovery partition.
This can achieved using the "Change Volume Password" or "Set Header Key Derivation Algorithm" actions.
Just check the "True Crypt Mode", enter you True Crypt password and perform the operation.
This release also brings many enhancements and fixes, like Serpent algorithm speedup by a factor of 2.5 and the support of Windows 32-bit for EFI system encryption.
Starting from version 1.12, it is possible to use custom iterations through the PIM feature, which can be used to increase the encryption security.
I'd just install windows over your encrypted drive, I don't think that will give you any issues.
The same of course for upgrades for obvious reasons.
Starting from version 1.0f, Vera Crypt can load True Crypt volume.
It also offers the possibility to convert True Crypt containers and non-system partitions to Vera Crypt format. It includes fixes for issues reported by Quarkslab audit that was funded by OSTIF.
The following post describes some of the enhancements and corrections done: https://veracrypt.codeplex.com/discussions/569777#Post Content_1313325 As an example, when the system partition is encrypted, True Crypt uses PBKDF2-RIPEMD160 with 1000 iterations whereas in Vera Crypt we use iterations for SHA-2 and Whirlpool.