One of the most sought after complaints people have with Windows 7 is the lack of an easy migration process from Windows XP. Microsoft provides a direct upgrade path only from Windows Vista.
However, Windows XP to Windows 7 upgrades are indeed possible, but customers will have to use an alternative path, Microsoft Deployment Tool 2010 tool that offers components such as the User State Migration Tool (USMT) — a solution capable of making sure that user settings for applications and the desktop as well as user files are transferred from XP to Windows 7 in the upgrade process.
This video demos the migration of user files and settings from Windows XP with 12GB of personal data to Windows 7 using Windows Deployment Tools.
In this video, Jeremy walks through using the MDTs’ USMT to transfer the user settings and files from a Windowx XP installation to a new install of Windows 7 on the same PC.