Updating from Windows XP under Parallels to Windows 7

I have Windows XP installed on my copy of Parallels 8 on Mac. It works fine. However, I wish to upgrade that to Windows 7. Reading Windows' documentation on the upgrade, it says I need to use the Custom installation and that ALL my user files will be gone. It is always a good idea to back up asystem before doing a change. But I wish to avoid having to reload all my MAC files. Looking under Win XP in my User ID in Windows Explorer I see my home directory and all its files from the MAC including my documents, etc.

Having long experience with Microsoft, I don't trust them. When upgrading the Windows version running on a boot partition on my computer, it deinstalled IBM OS 2 (deleted teh partition) and created a new partition just for Windows. They oculdn't wrap their mind around the idea that anyone would want to use other than Windows.

With all the caution about backing up and doing a custom install, I'm afraid to proceed. Since Parallels has mapped my home directory under OS X onto my Windows 'home' directory, I'm worried. Do I need to change the Parallels configuration toe keep my OS X user files out of sight for Windows and then map it back after the update?

The MS update advisor said my Ethernt 'card' was incompatible.

Since I have an upgrade version of WIndows 7, I need a prior copy visible to do the install.

Any suggestions. Are there documents on doing this. I wasn't able to find any on Parallels' website. Win XP uder Parellels wouldn't even run the 64 bit upgrade disk but it would run the 32 bit upgrade.

Thanks,

Brcce