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Windows 7 Upgrade Scenarios
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But don't despair. If you are the owner of a valid, activated copy of Windows XP or Vista (32-bit), you can still migrate to a 64-bit version of Windows 7. As with other Windows migrations, this process involves four steps:
1. Backup your valuable data, settings, and other information. You can use the Windows Easy Transfer utility, included on the Windows 7 Setup disc, to accomplish this.
2. Boot the PC with the 64-bit Windows 7 Upgrade media and perform a "Custom" install type, wiping out your old Windows install in the process and replacing it with a new Windows 7 install.
3. Reapply your data, settings, and other information to the new Windows 7 install by using the Windows Easy Transfer utility, which is included with Windows 7.
4. Manually reinstall all of the applications you were previously using.
The big difference between this type of migration and the one we discussed in Scenario 1 (Upgrade from a Higher-End Vista/XP Version to a Lower-End Windows 7 Version) is that, this time, you'll launch Setup by booting the PC with the Windows 7 Upgrade media. In the previous scenario, we started Setup from within the previous OS.
Triggering Setup this way changes a few things. When you reach the "Where do you want to install Windows?" phase, where you choose between Upgrade and Custom, you will still need to choose Custom. But, unlike with Scenario 1, you get the advanced options (delete, format, and so on) in the disk partitioning phase. What you choose here is important. If you simply choose the system disk (e.g. the disk on which your previous OS is currently installed), you'll get the familiar warning message noting that Setup will backup your old install in the Windows.old folder structure. However, if you wipe out the disk by formatting and/or deleting it, no Windows.old folder structure will be created. And there are worries that Windows 7 won't activate if you do wipe out the old install.
Fortunately, I've tried it both ways. And both ways have worked for me. That is, Windows 7 activates in both cases, which is what you're looking for. However, I recommend not wiping out the previous install by formatting or deleting the partition with the current Windows version. Instead, simply choose the existing partition and let Setup create windows.old. Once Windows 7 is up, running, and activated, you can choose to delete windows.old to regain the disk space (which could be many, many gigabytes.) It's better to be safe than sorry. (Imagine how awful it would be if you wiped out the old install and then Windows 7 wouldn't activate. Well. I actually do have two workarounds for that too. See Methods 2 and 3 in this article.)
Continue to Upgrade Scenario 3: Upgrade a Netbook from Windows XP to Windows 7...
--Paul Thurrott
October 28, 2009

Series Introduction
Vista to a Lower-End Win7 Version
32-Bit Vista to 64-Bit Windows 7
Upgrade a Netbook to Windows 7
Upgrade Windows 7 RC to RTM
More soon...
Windows 7 Upgrading on the SuperSite Blog
Windows 7 Question of the Year
Clean Install with Upgrade Media
Family Pack is Identical to Upgrade
No One Is Endorsing Piracy
No Multiple Installs with Hack
A Bit of Microsoft Backpedaling
Microsoft Talks Upgrade Media
Ed Bott on Windows 7 installation and upgrade
Dear Microsoft: What's the Deal?
Finally, Some Upgrade Answers
All About Microsoft Licensing
Clean Install with Upgrade Media
Ed Bott on ZDNet
Ed Bott's Windows Expertise
More SuperSite install guides
Windows 7 Clean Install Screens
Upgrading to Windows 7: Intro
Upgrade from XP to Windows 7
Upgrade from Vista to Windows 7
Clean Install with Upgrade Media
But wait, there's more!
Visit my Windows 7 Activity Center to view every Windows 7 article I've ever published, dating back to 2007. And check out my Windows 7 posts on the SuperSite Blog!
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