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According to Microsoft's Technet Website, "There is no Upgrade option available when installing Windows 7 on a computer running Windows XP. The task involves using Windows Easy Transfer to migrate files and settings from Windows XP to Windows 7 on the same computer. To do this one must first copy files to a removable media, such as an external hard drive or UFD, or to a network share. Then, one will need to install a fresh copy of Windows 7 on their existing hardware, migrate the files back from the removable media or network location and then onto the computer. When one has finished, they must install the software programs again, but the files and settings will have been copied from Windows XP.
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