Windows 7 RC is scheduled for public release on May 5th 2009. Many of the Windows users are still using Windows XP and it is the right time to do an upgrade to Windows 7. Upgrading to Windows 7 is a simple process and you will not lose any files and documents which you had in Windows XP. User State Migration Tool (USMT) can be used to migrate user files and settings from Windows XP to Windows 7 using a default installation.
USMT captures desktop, and application settings, as well as user accounts and users’ files, and then migrates them to a new Windows installation. Using USMT can help you improve and simplify your migration process. TechNet has a video demo on how to migrate from Windows XP to Windows 7.
More information on User State Migration Tool (USMT) is available here.