Upgrade from XP to Windows 7 on 1 computer

I want to upgrade my existing computer from XP professional to Windows 7 Professional (I have a copy of 7 Pro as an iso image file) and then run XP in virtual mode on that same computer without having to re-install all my programs.

Paragon Go Virtual and ZInstall both seem to be possibilities but I’m not sure they will do what I want on my 1 computer. My computer does not have hardware virtualization.

Any thoughts, ideas, hints, recommendations will be appreciated.