Windows 7 will not automatically upgrade from XP, which means that you have to uninstall Windows XP before you can install Windows 7. For best results, transfer your files and settings to a portable hard drive. Then unplug the portable drive and set it aside for later. Rename your Windows XP drive.
Choose Rename, type XP, and press Enter. This will install everything in English, including menu language, keyboard layout, and currency symbols. Click the Install Now button. Choose Custom Advanced — not Upgrade. Clicking Format completely erases everything on the XP drive. After the formatting is complete, click Next. Windows 7 begins installing itself on your old Windows XP drive.
It should take about 10 to 30 minutes. Type your product key and click Next. Enter your user name and a name for your PC and click Next.
These names can be anything you want. Type and retype a password, then type a password hint, and then click Next. Choose Use Recommended Settings. Confirm the time and date settings and then click Next. Windows 7 usually guesses these correctly. Windows 7 gives you options: Home, Work, or Public. This setting dictates the security level, so be sure to choose correctly.
However, before you get too comfortable there are a couple more things you should do. Visit Windows Update and download any security patches and updated drivers issued by Microsoft. Make sure that Windows 7 recognizes your software. Run your old programs to make sure that they still work. Check the user accounts.