I had a customer who wanted to create a DEV organisation to practise tinkering with CRM on.
The easiest way to do this is to take a copy of the live organisation and import it.
I have done something similar when upgrading a CRM 4 organisation to CRM 2011 so I was confident I knew what to do.
The process was surprisingly easy, take a backup of your live database (not the MSCRM_CONFIG), which is the database with the company name_MSCRM.
you then restore the database and specify a different name for the DB.
You then pop into the CRM deployment manager and choose import database, run through the rest of the option and you have got yourself a DEV organisation.
For those of you who want to do this and are not impressed with the instructions above, don’t panic the blog post below runs through the process step by step
The only downside is I guess you are then using up extra licences.