OK, some ground rules.
First, we do not attempt to automatically convert Mating Conditions into Assembly Constraints when an old assembly file is opened in NX 5. Even though all of the parts get their internal data structures upgraded when an older part is opened in NX 5, this is NOT done with Mating Conditions. There are a couple of reasons for that, such as when an assembly file has been released and there's no need to make any further changes to the assembly, there is technically NO need to do a conversion since while it is true that you can't mix Mating Conditions and Assembly Constraints in the same part file, there are no problems having an assembly created with Assembly Constraints which contains sub-assemblies created using Mating Conditions. This way users can take existing released sub-assemblies and reuse them in their latest assemblies.
Now as to how one goes about actually converting a pre-NX 5 assembly so that the Mating Conditions are upgraded to Assembly Constraints, you must first switch NX 5 over so that Assembly Constraints are now the default scheme. You can do this in Customer Defaults -> Assemblies -> Positioning -> Interface and set the Positioning option to Positioning Constraints. Note that once this has been set, when you launch NX and open a file, on the assembly toolbar the Mating Conditions icons will have been replaced with Assembly Constraint tools. Note that you can temporarily set the system, at least for your current session, back to Mating Conditions, by going to Preferences -> Assemblies... and set the 'Assembly Positioning Interaction' option.
Now, with the system set to Assembly Constraints, open your existing pre-NX 5 assembly (you can use partial loading if you wish) and once open, simply select the 'Assembly Constraints' function either from the Assemblies pull-down menu or the Assemblies toolbar. After selecting the function a warning message comes up telling you that the assembly contains Mating Conditions and asking whether you want to convert them or not (note that you can ignore this message and continue leaving them in place and build new constraint on top of the old ones since these schemes totally ignore each other like they were never there, but it is confusing so I'm not sure I would recommend that anyone work that way or even try to). If you select the convert option, a dialog will come up which offers some options like only converting the Work Part level only (ignores the internals of any sub-assemblies), or the Work Part and any open children, or Work Part and all referenced parts (which means that it will automatically open any unopened yet referenced part files). Also there are some options about whether you want to get a summary or a full report afterwords, etc.
Anyway, I just tested this on a modest assembly, 160 components in 3 files (the main assembly and 2 sub-assemblies) which was modeled in Unigraphics V14.0 and last updated in Unigraphics V17.0 a bit over 7 years ago. The conversion took maybe 45 seconds and 333 constraints were converted with no errors.
John R. Baker, P.E.
Product 'Evangelist'
NX Design
Siemens PLM Software Inc.
Cypress, CA