Hi Jill,
Unfortunately, you cannot upgrade xp to win 7. With a upgrade copy of Windows 7 (you can only upgrade from vista to Win 7) If you have an upgrade version of vista that you install, then you can use the win 7 upgrade. If not, you will need to get the full version of win 7. This is a Microsoft issue not a Parallels issue.
Kat
Last edited: Apr 21, 2011