I have an app available as a free and donate version but my experience
may be useful for you. I have a single project, with a static final
variable called DONATE which is determined by the package name. You
could do the same thing and set a PAID variable.

 When someone tries to add a record, you would do a check, something
like if (! PAID) { /*inform user*/ } else {/*.....*/}. This will be
enough for the casual user but a determined user could get around the
restriction by modifying the apk using tools such as baksmali.

For packaging the donate version, I make a copy of the folder and run
a perl script which goes through the files and changes the package and
any references to add the .donate suffix. I then use Eclipse to build
an apk from this folder. (you will have to delete the .class files in
paid-version/bin/ that refer to the lite/free version, otherwise you
will end up with an .apk which includes useless files.)

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