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Replacing Windows XP

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I have ATI 2014 Premium. Will I be able to wipe out the Windows XP and replace it will a disk image from a Windows 7 machine?

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As it's from different hardware, you could perform a universal restore to dissimilar hardware. You'd have to assemble hardware drivers, at least for critical components such as chipset, to apply during the restore. You would likely encounter a Windows licencing issue at some point, and I'll let others comment on how that would work. Also some major software apps may require authorization since on new hardware.

If it were me, I'd do a clean install of Windows 7 to the PC.