I assume you want to go from XP to Win7 which is not supported by Microsoft.
Laplink make an excellent and cheap product called pcmover Upgrade Assistant which does the job brilliantly on either the same PC or moving to another and upgrading to Win7.
http://www.laplink.com/pcmover/
You install it on the XP system and save a small file it generates. Then install Win7 as a custom install (without formatting) and re-install pcmover. Select the file you saved and a couple of minutes later pretty much everything is back under the new system ( afew things may need redoing like some drivers, AV software etc. but it's minimal)
Have used this on a number of conversions from XP and Vista to Win7 and it works great.
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