After determining your upgrade eligibility, it's time get down and dirty with XP. Just like previous releases of Windows, Microsoft is selling XP Home Edition Upgrade for $99.

This release was designed with the average user in mind. It doesn't feature some of the more advanced networking options and remote file-sharing capabilities. Pick up a copy of XP Professional Upgrade for $199 if you're looking for those features.

Back up all data and settings

The first step along the upgrade path is to back up all your data, settings, and anything else you can't compute without. Our Backup Basics story will give you everything you need to know about performing a backup on your system.

After you've fully backed up all your important files and settings it's time to begin. Insert your upgrade disk into your CD-ROM. You'll notice the CD-ROM will automatically launch the installation menu. For now, minimize the menu. We're going to look at something else: Read1st.txt.

Read first file

The Read1st.txt file is located in the Docs folder of your XP CD-ROM. Start by locating this file and examining its contents. The Read1st.txt file will contain last-minute information that didn't make it into other documentation and a roadmap on which to find other useful XP information.

Now that you've become close to all of XP's readme files it's time maximize the installation menu and proceed.