What worked for me:
Upgraded from XP 32bit to Windows7 64bit
Buy a copy of Laplink PC Mover Upgrade Assistant for Windows 8 (will work on 7) and burn to disk.
Boot to the windows 7 disk and select "Custom Install". This will save the XP install to a "Windows.old" folder.(Fully accessible from Windows 7)
After the installation is complete, and all updates have been installed, install and run PCMover. In the "Configure Transfer" window, select "Standard(Recommended)" option. This will move all programs and settings to the Windows 7 install, saving having to manually reinstall and activate. Any programs that do not migrate can be moved using the "Advanced" option in Configure Transfer" window.
The only issue I had, was with Office 2003, I wound up doing a manual uninstall, and reinstalled Word, Excel, and Outlook individually, with no problems. Since support for Office 2003 has ended, I'm looking at other options for an office suite.
You will have to take ownership of files/folders if these are shared on a home network, so client computers can access.
Good luck.