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True Image 2014 - Need Guidance on OS Transfer Between Computers

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Purchased 2014 version within last 2 months and need to transfer files from old computer to a new one. I understand that the product moves all applications, files, settings, etc in total. The old computer has Win XP OS and the new has Win 7 Pro. Was told by Acronis tech support (no longer available to me free) that Win XP would overlay Win 7 which I obviously do not want to happen.

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That is correct. If you need to transfer content, you don't really need Acronis. Just copy your content to some USB disk and copy it back. Often, users take advantage of moving from XP to Windows 7 to rethink about how they organize their content (Windows 7 has this useful notion of libraries). I would also recommend you keep your content on another partition (or even better, another disk). The fact that you can move the default location of the user folders easily in Windows 7 makes it easy.
Note that you will have reinstall your apps. It is not possible to move the apps without the OS.