Windows 7 upgrade from XP??
Sorry, there is no easy and Microsoft supported way to upgrade your trusty XP machines to Win7 without essentially performing a full install. During the install if you don't format your drives, the installer will rename your old Windows folder to Windows.Old but you will only retain your Windows settings which will have to be manually imported into Win7. All the programs you had previously will need to be reinstalled, ugg.
Another option is to use Microsoft's Easy Transfer Wizard as described by Microsoft here. But once again this only grabs your Windows settings and not your Programs.
How bout first upgrading XP to Vista then Upgrading to Win7? Oh ya, that'll work if you have access to a Vista install disc and you damn well better make sure it matches your version of 7 with plenty of free time to spare.
I have come across an application from Laplink that is supposed to make the process simpler but I do not know of anyone who has used it. For 20 bones it might be something worth looking into.
Best of luck to all that performs this feat and please for all that is holy, do a full backup of your machine before you do 
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March 5th, 2010 - 14:42
Hello Schocka,
Just an FYI:
You can visit the official Microsoft Upgrading from Windows XP to Windows 7 site here: http://windows.microsoft.com/en-US/windows7/help/upgrading-from-windows-xp-to-windows-7
There are some nice videos tutorials and steps to take when migrating from Windows XP to Windows 7. And yes it is true you cannot directly upgrade from Windows XP to Windows 7 you can take some steps to ensure a smooth process.
Thanks again and good luck!
John M.
Microsoft Windows Client Support