Please note that when migrating from Windows XP to Windows 7 you will not have an "in place upgrade" option. You will however have the option to select "custom" install when prompted. The Windows 7 install process will then copy all of your data in "My Documents" over to a Windows.old folder within Windows 7 itself. All applications and documents stored in other locations will have to be reinstalled / transferred manually.
For more information on the Windows 7 Upgrade, please go here: http://bit.ly/3DvynK
For additional assistance with the migration of Windows XP to Windows 7, please go here: http://tinyurl.com/mhbep4
Microsoft Windows Client Team