If you have a qualifying XP or Vista which came with the target machine, or a retail copy which you don't plan to use during the period it is qualifying for Windows 7 upgrade version, then you can use Windows 7 Upgrade version - even if the qualifying OS isn't installed at the time.
This has no bearing on using any software to make the transistion, which is never as good as doing the superior clean install to get a fresh start. With Windows 7 backup imaging you need never have to reinstall again once you get the perfect first install following these steps:
Clean Install Windows 7