Copying over an existing installation is a potential recipe for disaster, especially with addons. You should always run their proper installer.
How to reinstall our products after a total system upgrade, is explained here ( and in the manual, of course...)
http://www.fsdreamteam.com/forum/index.php?topic=649.0Note that, Windows 7 doesn't allow to do an upgrade installation from a 32 bit to a 64 bit version of the OS, and doesn't allow an upgrade from XP in any case. This table here lists your install options:
http://mossblog.allthingsd.com/files/2009/08/windows-upgrade-chart.png"Custom install", mean you either install on a new drive/partition, or you entirely replace your existing OS so, in both cases, it's a reinstall from scratch, meaning you'll lose everything like user accounts, passwords, software activations, etc.
"In place upgrade" means that Windows 7 will just upgrade your OS, leaving all your settings intact and, as you can see, it's only possible from Vista, and you also have to match the version in order to upgrade so, if you had Vista Business, you can only upgrade to Windows 7 Professional, and so on.