I just Upgrade to Episerver 7.7.0. Now when i got to CMS edit i can see a tew menu called Media but i cannot see my uploaded files (that are stored in disk in upload folder). So my question is do i have to Migrate VPP-based files to the new media system after upgrading the episerver or is there anyway i can live with old legacy files system with newer version of episerver???
Yes, part of the upgrade to EPi CMS is the requirement to use the new media system, which is Blob-based. Since you're 7.7, you can download the source code version of the VPP migration tool to be used against your version (since the RTM version requires 7.5.394.2) - http://world.episerver.com/download/Items/EPiServer-CMS/vpp-migration-tool/