Windows XP can only be upgraded to Windows 7 via a clean install, meaning  that  all software needs to be re-installed.

There two approaches to migrate your old Windows XP environment on your new Windows 7 PC : 

• Transfer all your programs, settings and  personal files on a new Windows 7
• Run your Windows XP as a virtual machine inside Widows 7 PC

Program, Settings and Files Transfer

After extensive search we have found only 3 tools migrating programs, settings and files from Windows XP to Windows 7.

• PCmover Professional transfers about 250 programs, settings and files, about $50.
• SoftRescue - transfers about 80% of programs and settings and files, about $30
• Windows Easy Transfer - transfers operating system and program settings and files only, but FREE!.
• PickMeApp Beta - transfers about a million programs "only", but FREE!.

We have learned from PCmover blog that Windows 7 Migration  tool offered by IYogi is based on PCmover Professional.

Transfer Single Application

• Presto Transfer -  43 scripts, $13 each for transferring about 39 popular applications.
• Firefox and Thunderbird - manual instructions and some free tools.

Settings Transfer and Backup

• Fab's AutoBackup 4 - already non free $70 backup, restore, transfer tool for web browsers, email clients, ++
• Profile Migrator  - a free tool to migrate user profiles, alternative to USMT
• BackRex -  a $70 settings backup and transfer tool ( for web browsers , emails clients, etc.)
• SSBT 1.4 - A free settings backup tool supporting 28 programs on windows XP

Windows XP Virtualization    

Note:  Read Microsoft Warning before looking for those solutions.

• Zinstall - transfers old PC inside a proprietary virtual environment running on Windows 7,  about $90.
• Parallels Desktop^® for Upgrading to Windows 7
• VMware Converter free
• Disk2vhd v1.63 - a free tool to create a snapshot of original Windows XP to run it in the XPM.
• SmartDeploy uses VMWare Converter  to provide virtualization.

Also

• Application Mover is a shareware tool relocating installed programs from one path to another on a hard disk. The tool  substitutes files paths so that new path will reference to the old one.  c:\prog\editor -> c:\oldstuff\edit

• A free alternative of the tool above.

Mass Migration

• Dell KACE Kbox image cloning system for a mass migration
• Viewfinity User Migration  to automate Microsoft User State Migration usage

Please let us know if we missed any solution.