Installing windows 7 on a new pc

I am going to build a new pc from scratch, I already have a windows 7 installation disc and an windows xp installation disc from my old pc that i bought. I am worried when I try install the windows 7 os on the new build it wont work because when i put the disc in my laptop the auto run comes up and says run setup.exe, but as far as I know that is a file that is associated with windows (and the new pc wont have an OS yet) Is that file just for upgrade purposes? because on the disc there are also many other files and folders... Does that mean I will be able to install the OS on my new system from the BIOS menu or will i have to install the old xp OS and then upgrade
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