Can Windows 7 full version be used to "upgrade" XP O/S??

I have 3 PCs installed with XP O/S, which is due to be not supported by Microsoft this coming April. I would like to "upgrade" these PCs to Windows 7 Home Premium rather than re-installing them from scrap, as well as their Applications. However the Windows 7 Home-Premium FULL version, including its SP1, is being sold much cheaper than its "upgrade" counter parts in most on-line sits. So my basic question is:
Can a Windows 7 Home-Premium FULL version be used as an "upgrade version" by just slotting it into my bootable optical drive of each XP PCs, and there will be a special Menu to guide me through? My gut feeling is this is NOT possible otherwise Microsoft wouldn't be selling a separate "Upgrade Version" as well.
Thanks

I presume that you are comparing OEM full versions with retail upgrade editions. As long as you are happy with the restrictions on OEM versions, they will do just fine.

Be aware that there is no upgrade path from XP to Windows 7; whichever version you use you will need to do a clean install and reinstall any programs. Even with an upgrade version of Windows 7 this is what happens.

Thank you for your reply! Indeed I wanted to "upgrade" my XP PC to Windows 7 without re-installing the Windows 7 O/S from scratch and ALL of my previous Applications. But your: "Be aware that there is no upgrade path from XP to Windows 7" statement does worry me though because it sounds that I could not upgrade directly from XP to Windows 7, which is what I wanted to do. However I seem to remember seeing some of the on-line sites been selling Windows 7 Home-Premium upgrade from "XP/Vista" O/S though.
Thanks

AFAKI The "upgrade" kits will get you Win 7 but you will need to do a clean install, it won't let you preserve XP programs (AS AEP stated)

See this Microsoft link.

In reference to windows.microsoft.com/en-GB/windows7/help/upgrading-from-windows-xp...:

To upgrade your PC from Windows XP to Windows 7, you'll need to select the Custom option during Windows 7 installation. A custom installation doesn't preserve your programs, files, or settings. It's sometimes called a "clean" installation for that reason.

Sou yes, you can upgrade but you still have to re-install everything.

Don't forget that you can only normally "legally" buy OEM OS's if you also buy a piece of qualifying hardware - otherwise Microsoft could refuse to honour the license. Looking at the license terms it seems they are NOT allowed for end users anymore - only for those who are actually selling the equipment on as a system builder.

That's not true. Microsoft are happy for an end user to buy an OEM version of Windows; it's just that you don't get the same level of support as with the retail version and (pre Windows 8) you can't transfer it to another computer.

So the terms on the MS website that say Win 7 OEM can't be used by the system builder for personal use are untrue? See this page

States Win 7 OEM licenses cannot be used for personal use. Win 8 can but not as an upgrade.

From the FAQs:

Q. Can I use the Personal Use Licence for Windows 7 software?A. No. The Personal Use Licence is for Windows 8 and Windows 8 Pro software only. If you are building a computer for your personal use with Windows 7 software, you still need to purchase the full packaged retail version.

Looks like the old requirement on XP to buy qualifying hardware has been removed though so on that my info was out of date.

Read this interview with the Microsoft OEM Manager: http://www.pcpro.co.uk/features/351598/how-to-buy-wi...

In reply to a post by AEP:

Read this interview with the Microsoft OEM Manager: http://www.pcpro.co.uk/features/351598/how-to-buy-wi...

I think Microsoft has been "Shifting Goal-Posts"!!

In my own mind there is no doubt that MS didn't object to Technical-Savvy End-Users upgrading their hardware (or building from scratch) & buying OEM Software - MS wasn't going to get too many problems as they were NOT supplying any support! In addition, the quantities involved were thought to be minimal.

However, I strongly suspect that MS now realises the quantities are higher than expected & want to maximise profit by closing that down!

Hence the apparent discrepancy between the PCPro Article (dated 2009) & the links that Ian has cited!