OK - From XP32, you will not be able to upgrade directly - What will happen is you boot to the DVD, then point Win 7 to your XP32 installation and let it rip. The Data and Applications you currently have in XP will be put into a folder called WINDOWS_OLD. You will be able to retrieve your data, no problem - It's just a folder like any other. You won't be able to run your XP applications, though. Those need to be reinstalled.