Newbie import data question

Just bought Parallels Switch to Mac edition, I'm switching from a desktop PC to a new iMac (if it ever shows up). I've read the documentation and tutorials etc. and I'm still confused.

If I use the Parallels USB cable method, does this bring the entire Windows OS plus my data and apps into my iMac?

I don't want to do that. I plan a clean install of either Widows 7 or 8 on the iMac, and then I only want my data from the PC. I'll install the few Windows programs I'll need from scratch. So all I want from my PC is my Documents, Music, Pictures and Video folders. Is that an option? Did I need to buy the "Switch to Mac" edition to accomplish this?

And perhaps the dumbest question: I'll need to run my PC and its monitor alongside the iMac till all this is done, right?

thx!