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If I wanted to upgrade to Windows 7, would I need to buy the entire package ($200) or just the upgrade ($120)? I have Windows XP currently.
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While you can use an upgrade version of Windows 7, it WON'T preserve your files and settings. In other words, it won't "upgrade" your XP - it's actually a clean install. See http://windows.microsoft.com/en-US/windows7/help/upgrading-from-windows-xp-to-windows-7 for a tutorial and some tips.