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First of all, which version of Windows XP do you have (Pro or Home)? If you have Pro, then you can use the built-in backup software to make a complete backup of your system. You can run the program by typing "ntbackup" in the run box (shortcut by pressing windows key + R). This will backup all of your files and settings, so should your upgrade go badly, you can reinstall Windows XP and then run "ntbackup" and perform a restore.
If you don't have Windows XP Pro, then you'll have to look for a 3rd party backup utility. Of course, I could be wrong, but I'm pretty sure that ntbackup isn't included in the Home edition. Anyway, there are lots of utilities out there such as Norton Ghost, Acronis True Image, etc... These programs will typically backup up your entire system and save it as a single image/file. They usually provide tools that will let you explore the image and copy any files you need, such as pictures and documents.
Okay, so we covered backing up all your files. Hopefully, you found a good utility that will get you to the next step. Once you have backed up your files, you should store them on a different drive or burn them to a DVD if it'll fit.
The next step has two different routes. One, you can perform an upgrade, which will keep most of your settings and programs and should keep all of your documents. This is the easier method, but it isn't as clean. For most people that aren't real technical, I would recommend this.
If you're comfortable with reinstalling everything, then you should perform a fresh install of Vista. This will ensure that you don't have a lot of extra drivers, dll's, and other junk cluttering your hard drive. The major downside is that you'll have to manually copy over all of your files and settings and you'll have to reinstall all of your software. This can be a full day's job for even the experienced IT person. Plus, some programs just won't work, even when trying different compatibility settings.
On a side note, is there a particular reason why you want to install Vista? Personally, unless you have an absolute need for it, I'd stick with XP.
PS - If you opt for a dual-boot system, Windows Vista won't recognize the programs that are installed in XP. You would have to reinstall everything in Vista.
This message has been edited since posting. Last time this message was edited on 1. February 2008 @ 12:26
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