Possible Upgrade Options

If you are eligible for the Windows 7 Upgrade Program, you will receive a Windows 7 Upgrade Option media for the Windows 7 SKU that corresponds to your Windows Vista license. However, upgrade path restrictions mean you cannot simply upgrade from the 32-bit version to the 64-bit version. In such cases, you will need to perform a clean install using the provided media.

Microsoft is also providing the option for users to upgrade beyond their initial Windows Vista license through Windows Anytime Upgrade (WAU). For example, the Windows 7 Upgrade Program allows e.g. an upgrade from Windows Vista Professional to Windows 7 Professional. WAU allows the user to upgrade to a "more premium" version of Windows 7 by purchasing an upgrade key to unlock additional features.

Here's a summary of the possible upgrade options :

In-place Upgrades

• Setup.exe is launched from within Windows VISTA; user chooses “Upgrade” option.
• Windows VISTA base language must match target Windows 7 language.
• Sufficient free HDD space to perform the upgrade on the primary OS partition (9GB for Windows 7 files + \Program Files + \Documents & Settings + \Windows).
• Existing applications and user data will be automatically migrated to the new Windows 7 installation.
• Installs on same partition as existing Windows VISTA installation.

Clean Installs

• Setup.exe is launched from within Windows VISTA; user chooses “Custom (advanced)” option.
• Sufficient free HDD space for Windows 7 files (16GB).
• Existing applications and user data will not be migrated to the new Windows Vista installation.
• No data is lost – remains on HDD (C:\WINDOWS is preserved as C:\WINDOWS.OLD) – and the user can manually restore data.
• Installs on either a new partition or the same partition as existing Windows VISTA installation.

External Boot / Wipe & Reload

• Setup.exe is launched from outside of Windows VISTA; user boots directly to Windows 7 Upgrade media.
• Sufficient free HDD space for Windows 7 files (16GB).
• Existing applications and user data will not be migrated to the new Windows 7 installation.
• If repartitioning or format is chosen, data will be lost. 
• Installs on either a new partition or the same partition as existing Windows VISTA installation.

This table summarizes the possible upgrade options :

As you can see, an In-Place Upgrade is only possible for a direct upgrade from a Windows Vista license to its matching Windows 7 SKU. Otherwise, a clean install is necessary for the upgrade or downgrade. Upgrades to a higher version can also be accomplished by first upgrading to the matching Windows 7 SKU and then purchasing an upgrade key through Windows Anytime Upgrade.

Editor's Note : Microsoft does not allow a Windows XP to Windows 7 upgrade. The Windows XP Downgrade above refers to the optional Windows XP downgrade provided by certain OEMs. Unlike actual Windows XP installations, they come with a Windows Vista COA (Certificate of Authenticity) and are therefore eligible for the upgrade program. Hence, users with Windows XP Downgrade licenses can upgrade to Windows 7. Technically, the upgrade option in the setup will be disabled but the customer is able to do a clean install using the registration code in the Windows Vista COA.

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