Question about student upgrade

I am a student with Vista Home Premium right now and I want to upgrade to 7 using the $30 student upgrade.

A couple of questions though.

If I have read this right, (Windows 7 US Online Store - Student Registration) then if I buy and install Windows 7 Home Premium I won't need to backup my files? Is this true? If so, does that mean all of my files will be in the same places? And also what about my programs like Office and all of the other many programs I have installed right now?? I am just trying to clarify this so I don't end up not backing up my data and end up losing it accidentally.

You always need to back up your data doing any install!

They might have been referring to the fact that an Upgrade install keeps all your programs, files and settings in place and just upgrades the OS, but we see failed Upgrades in here every day.

Likewise, choosing a Custom install when you run the installer from desktop saves all of the previous Vista/XP files in a windows.old folder but those can fail too, and do.

Since you have to back up your files anyway, consider doing the cleanest possible install which is booting from the Win7 DVD for a Custom install using Advanced Drive tools to format the hard disk.

It is always a better choice than the in-place Upgrade which is bogged down by whatever baggage is carried over from the Vista bloatmonster, or the Custom from desktop which can't format the drive first.