Thanks for all the input on my question.
I did know that you cannot upgrade from XP.
In my original thread entry I wanted to install Windows 7 on a new 1 TB drive. I wanted to get the upgrade version (save $100.00) and needed to know if I had to install my XP on the new drive in order to use the upgrade (to do a clean install). I had read that the upgrade version used some components of XP durring its install??? If this was the case do I need to install XP and do the updates to SP3 to do this with the upgarde version. If not would it only ask for my XP disk durring the installation to my formatted HDD.