Silver Surfer Update

windows 7 how in plain speak?

i have xp and want to update to windows 7.i know it cannot be done whilst xp is on.so how do i do it and what about my pics.favs etc?do i lose them.can you explain in easy to understand terms[silver surfer,nuff said eh!]i have a flashpen can i use this ?]
i really need imformation as a beginner not as a seasoned user
as a hard drive would the iomega 500gb hard drive do the job described?

Why not just Upgrade to Windows 7? You put the CD in whilst XP is running!

Follow the Instructions on the Upgrade CD – you need to choose Custom Install if you are Upgrading from XP.

Windows 7 will move all your stuff into a folder names Windows.old

When Windows 7 is Installed, just open the Windows.old folder and everything will be put back onto your computer automatically.