If you have Windows XP-based computer and going to upgrade to Windows 7 you should have good tool for files and settings migrating. You can use Windows Easy Transfer that created for transferring files, email, pictures, and settings.
To do the migration you need:
- computer with Windows 7;
- computer with Windows XP;
- USB flash drive.
First you should save all important personal data from Windows XP computer. If you don’t have the Windows Easy Transfer tool installed on it you can install it on the flash drive using Windows 7 computer.
Step 1. Install Windows Easy Transfer tool on the flash drive.
On your Windows 7 machine launch Windows Easy Transfer: click Start 
button, choose Getting Started and then Transfer your files.
You will see the Windows Easy Transfer welcome screen.
Press Next button to proceed. In the next window choose An external hard disk or USB flash drive.
Then choose This is my new computer.
In the next window press No.
Then choose I need to install it now.
It is time to plug into computer your flash drive. In the wizard window choose USB flash drive.
And browse for your flash drive. In my case it is Removable Disk (G:).
You will see the process of copying the Windows Easy Transfer tool files on your removable device.
Now you are ready to install Windows Easy Transfer on your old computer.
Unplug your flash drive from new computer (Windows 7).
Step 2. Transfer files from Windows XP computer.
Plug your flash drive in your old computer (Windows XP). You will see the folder WindowsEasyTransfer and icon for Windows Easy Transfer tool.
You can start Windows Easy Transfer process by double-clicking on the program icon.
In the first window press Next button
then choose This is my old computer.
The program will scan your system drive for users’ data and settings.
You will see the list of the user accounts.
You can copy only certain files. Just press Customize and choose the items that you want to save.
Also you can use Advanced option and choose files in the more detailed mode.
Press Save button and now you are ready for transferring. Press Next button to start that process.
You will be asked to set the password to protect your future .MIG file that will contain all your settings and files, but you can leave these fields blank. Press Save button to proceed.
Choose file destination at the next window, you can use same flash drive where your Windows Easy Transfer tool is located.
Wait until saving files and settings will be finished.
Review the information in the next window and press Next button.
Read the report and press Next button.
Press Close buton and un-plug your flash drive from old computer (Windows XP).
Press Close button.
Step 3. Transfer your files on the new computer (Windows 7).
Launch Windows Easy Transfer: click Start button, choose Getting Started and then Transfer your files.
and navigate to the .MIG file location (it is can be your flash drive or external hard drive).
You can transfer all files and settings that are contained in the .MIG file or you can customize what to transfer by choosing Customize or Advanced Options.
Press Transfer button and wait until transferring to new computer will be finished.
After process will be completed you can review what was transferred or what programs were installed on your old computer (Windows XP) but don’t install on a new one (Windows 7).
Good luck!