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So I am moving my project from one laptop to another because my old one is dying. I am using Delphi BDS 2006.

First I installed my original IBAC file: ibdac300d10std.exe
So I downloaded the new IBAC file: ibdac310d10std.exe
and then I uninstalled the old installation from teh control panel Add/Remove programs.
But when I try to run the new setup file it says something like "an old version of IBAC is detected. Please uninstall the old version first". but this is immediately after I have already uninstalled the old version.

I have now tried to install the first one, and then the new one on top, and I did not get any errors

Sometimes IBDAC uninstallation does not delete all files. So you can have this problem.

The way you have found to upgrade IBDAC is correct.