"Moving to Windows 7 Home Premium from Windows Vista Home Basic or Home Premium qualifies as an upgrade. All other paths, including a move from a 64-bit edition of Windows Vista to a 32-bit edition of Windows 7, require a more detailed re-installation process."
The last sentence subtly answers your question, but if you want it to be clear, yes you can use this to do a clean install. Note that although there are several different versions of Windows 7, including "upgrade" versions only; however, this is not one of them. The Windows products with "Upgrade" in the name are upgrade versions only.