With any operating system, the best way to install is to start clean, formatting the computer and erasing all data. This isn't the only way to install an operating system, however -- Windows XP was originally sold as an upgrade for Windows 98 and Millennium Edition users. You can install XP over an existing operating system.
Disc Types
Microsoft sold Windows XP in two editions -- Home and Professional -- and promoted both as upgrades to the previous versions of Windows. In addition, some computer manufacturers offered users a free upgrade to Windows XP, too, usually for systems that sold with Windows 98 or Windows ME. These users received a disc labeled "Windows XP Upgrade" in most cases. These discs, though labeled differently, were XP installation discs in disguise. The contents of the disc are identical to an XP Home or Professional Edition that you'd find in a store.
Upgrade Install
When XP first came out in 2001 and users were changing from older operating systems to Home or Professional Edition, Microsoft primarily recommended an upgrade install. This is the most straightforward way to install Windows XP, though not the most effective. You may prefer this install type as it doesn't format the hard drive and all personal information, but the circumstances in which an upgrade install can occur in 2011 are limited. To use the upgrade, you have to start with Windows 98 or ME. Insert the XP disc while the computer is running and click "Upgrade to Windows XP." Follow the prompts to complete the installation.
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