Windows XP users need to know that regardless of which edition they currently have installed (Windows XP Home, Windows XP Professional, or Windows XP Media Center Edition) and regardless of which edition of Windows 7 they are moving to (Home Premium, Professional , or Ultimate), they will need to perform a clean install, whether they buy the upgrade or full version. The hassle of backing up applications and user data will fall on the user; a clean install will not back up anything. Using Windows Easy Transfer, users can copy their important files and settings to an external USB stick, external hard drive, or DVD, and then move the data back after the installation.
The installer will verify that XP is genuine and Windows 7 will have to be installed on the same partition as the XP installation. The good news is that Microsoft is allowing XP users to buy the cheaper upgrade version if they want to (Microsoft typically lets owners of the two previous releases of Windows to do this, in this case XP and Vista).