Going with DOT 5 fluid, what do I need to do?

can you mix 3 and 5 or does system need to be completely dry?

You shouldn't mix the two, but if you do by accident, it won't kill you. You will need to flush the system out, however.

I usually drain the master and then the rest of the system. Bench bleed the master into a seperate cup until it comes out purple. I then bleed out the system until it is coming out purple and call it done. Done it for years without problems.