Installing Windows 7 over XP - System Restore

DarkStar GT

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Over here: KVR: Win7 system restore disaster (& dongle issue...) [slashdotted!]
the poster reported:
The first problem is to do with system restore. Basically Win 7 makes restore points but automatically deletes all of them when the PC is rebooted. This deletion happens during the 'Starting Windows' screen and means that booting after a restore point has been created takes a long time (several minutes).
and
If you install Win7 over an installation of XP that stored user data in a different partition to the system drive (e.g. by installing XP from a slipstream CD), system restore in Win7 won't work. It will delete restore points without warning upon boot. In other words, this produces the same effect on system restore as dual booting between Win7 and XP.
Anyone-else seen this?
 

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I have seen no evidence to support either of these contentions.

In fact, Sys Restore in Dual Boot with XP is fixed as far as I know. I just checked it on a computer here and both XP and Win7 have their Sys Restore on. Just check for sure.

How would installing XP from a slipstreamed CD cause User data to be stored in a different partition than the system drive, thereby causing System Restore to not work? Huh?
 
As you can not do a inplace upgrade from Win XP to Win7, clean install only, all Win XP data is deleted.
 

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OS
ME/XP/Vista/Win7
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