XP Home won’t upgrade from ME

I have a computer with windows ME. I tried to upgrade to windows XP Home Edition but I received the following error, “Windows XP Setup does not support upgrading from Microsoft Windows Millennium to Microsoft Windows XP Home Edition” when checking for compatability. I could continue setup but I had to do a new installation, the upgrade option was not available. The microsoft web site states that I can upgrade from windows me to windows xp. What do I need to do for this to work?