Windows 7 Upgrade Guide: All Your Questions Answered
Which Version of Windows 7 is Right For Me?
Only you can decide on that one, but check out our handy Buyer’s Guide more information on which edition is right for you.
Here's an excerpt:
There are three Windows 7 editions that will be sold at retail in the US market:
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Home Premium
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Professional
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Ultimate
If you tried out Windows 7 in its public Beta or RC versions, you used a pre-release of the Ultimate edition, although it's possible to tweak the installation process to install other editions. So, what are the major "core" features of these editions of Windows 7?
According to Microsoft's "Which One Is Right for You?" page, here are the common features (many of which we will cover in current or upcoming Feature Focus articles):

Microsoft's list leaves out some significant core features, though, including:
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32-bit and 64-bit editions provided in retail/upgrade versions
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Windows Aero desktop (with supported graphics cards and drivers)
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Improved wireless networking
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Improved network management for mixed Windows 7/Vista/XP networks
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Improved audio and video codec support
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Improved digital TV support
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Windows Backup for both files and system image
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Conclusion – In Place Upgrade vs. Clean Start
Hopefully this guide provided you all the information you will need when it comes to selecting a Windows 7 upgrade edition, but assuming you have a version of Vista capable of doing an in-place upgrade, should you? The answer to this is complicated, but it really depends on the user. Maximum PC readers will probably want to do a clean install for their top performing machines, but what about friends and family? The danger of doing a clean install here is that files, settings, applications, and even customizations they forgot they made are easily wiped out, leaving you to support them.
The good news here is that the upgrade process, based on my testing, works exactly as you would expect. Sidebar gadgets will still be on the desktop, applications and browsers will retain their settings, start menu icons will still be present, etc. You will also find that documents, pictures, and music will be properly tagged, and moved to the appropriate location. The only personalization settings you lose are the desktop wallpaper, quick launch settings, and in some cases, the odd application may need to be re-installed.
All things considered, the in-place upgrade works fairly well, but make sure you know the history of the machine before you proceed. If it was upgraded from Windows 98, to ME, to XP, to Vista, and now 7, your pushing your luck. Are you planning on upgrading? If so let us know what your setup is.