How to Tell Which Version of PowerShell is Installed
One of the easiest ways I've found to determine which version of PowerShell is installed on a computer is to run the $host.version command.
The output will display the Major version, Minor version, Build, and Revision number. For example, here is the output from a computer with PowerShell V1 installed:

And here is the output from a Windows Server 2008 R2 beta computer, which has PowerShell V2 integrated into the operating system:
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