I think you may have gone a different route already (PCMover) but wanted to answer your questions. Win 7 Pro, Ultimate and Enterprise give you the ability to download a feature called XP Mode which is a virtual machine that runs a fully licensed copy of XP.
There are also tools you can use that will create an image of your XP disk and then use that image as a virtual machine.
http://www.techrepublic.com/picture...g-windows-xp-system-into-a-virtual-machine/1/
The problem with both of these solutions is that you end up still running XP so you really haven't upgraded.