Given an assembly that has various child CATProducts and Components, is there an easy way to change the Components so that they are actual CATProducts?  This would mean that everything underneath the Component (child parts, products, constraints, etc) would be maintained.

Any thoughts on this are appreciated.

Hello Paul,                                                            
                                                                       
In CATIA V5 there is no way to convert a Component into a Product that I
know of.  Seems this is the case since there have been no other replies
to you post as well.  But I may have a solution for you to get the end 
result you are looking for.  Give this a try.  Oh, and it is an easy   
way too.                                                               
                                                                       
Solution:                                                              
====================                                                   
CRITICAL SETUP:                                                        
====================                                                   
Go to Tools>Options>Mechanical Design>Assembly Design>Constraints      
Tab>Paste Components: SELECT => "With the assembly constraints only    
after a Copy".                                                         
====================                                                   
                                                                       
1) Open a New Product in CATIA V5.                                     
2) Select the "Component" icon to create a new Component in the assy.  
3) Add several Parts, Components, Products (including Constraints      
   between as many as you like) to the Component you created in Step 2.
4) Select the "Product" icon and and add a new Product to the top level.
   You now should have a structure similar to this . . .               
   - Product1 (top level Product)                                      
   |   + Product2 (Component added at Step 2)                          
   |   |   + Part1                                                     
   |   |   + Part2                                                     
   |   |   - Product3 (Product or Component)                           
   |   |   |   + Part3                                                 
   |   |   |   + Part4                                                 
   |   |   + Constraints                                               
   |   + Constraints                                                   
   |                                                                   
   - Product4 (Product added at Step 4)                                
   |                                                                   
   |- Applications                                                     
5) Select each of the Parts and/or Products and Components under the   
   Component that you want to change into a Product (Step 2 Component).
   (You can use the contextual menu on the Component=> Selection Mode> 
   Children, then hold the CTRL key and reselect the Component to      
   un-select it and keep just the children.)                           
6) Right-click with all of them highlighted and select "Copy".         
7) Right-click on the Product you created at Step 4 and select "Paste".
8) Delete the Component created at Step 2.                             
9) All constraints and children of the sub Products and Components have
   been pasted into a Product.  You now have a Product instead of a    
   Component.                                                          
                                                                       
Note: I tried using "Cut" instead of "Copy" but the top level          
Constraints in the Component would not come along.  Copy works though. 
                                                                       
Please let me know if this solution works for you and/or advise if you 
need further assistance or if something isn't clear.  Thank you.       
                                                                       
Kind Regards,                                                          
Curtis F. Niemeyer                                                     
IBM PLM Technical Support Americas                                     

The reason the "Cut" did not work was because of the setting you chose at the very beginning in Tools + Options.  If you had instead chose "Always with the assembly constraints", you could "Cut" or "Copy".