+1 for the above.
As far as I know if you want to upgrade, you need a full-mode Windows and with your crippled non-bootable Windows an upgrade may not be possible.
I shall go with gregrocker that you should only set right your non-bootable Windows Home Premium for reasons mentioned by him. I was just waiting for gregrocker to show you the way.
I do understand your concern and desire to upgrade in the fond hope of retaining your data. However it does not require a Windows upgrade.
You can access your hard drive with a Live Linux CD and copy any critical data you may wish to save. ( There may be other ways too to accomplish the task - may be greg's tutorial deals with it too - I have not seen that.)
In case you encounter any difficulties in executing those procedures you can have a look at my guide
Lucid Puppy way to recover files from a non-bootable computer .
Have you not made your Recovery Disks? Once you succeed in making your laptop bootable and run the existing installation, I would strongly recommend that you create the Recovery CDs. This will enable you to restore your system to the factory condition in future. Even if you want to go for a clean install you should have this as a backup (in case you encounter any difficulties.)