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There was never any direct upgrade path from Windows XP to Windows 7.
You have to do what Microsoft calls a "custom installation" which is what is more commonly called a "clean install."
Microsoft recommended that XP users use "Windows Easy Transfer" to move "files and settings" from an XP computer to a Windows 7 computer. In my opinion, it's safer and more reliable simply to copy the data you want to keep to an external device (typically, an external hard drive) and then copy it back after the installation has been completed.
In either case, you will have to reinstall programs from original installation media (CD, DVD, downloaded file). If any of the software you have requires a license key in order to install, be sure that you know these keys before you start the process. You can use any of a number of "key finder" applications if you don't have the keys written down somewhere. Some are free; others are not.
The difference between "upgrade" and "full" versions of Windows 7 was solely the cost. The upgrade edition checked for the existence of either XP or Vista as one of the first steps in the installation process.
Technically, it's possible to do an upgrade -- preserving your programs and data -- from XP to Vista and then another upgrade from Vista to Windows 7, but I've never seen anyone say anything good about that idea (and you'd have to buy a copy of Vista).
Here's some helpful reading:
- http://windows.microsoft.com/en-us/windows7/upgrading-to-windows-7-faq
- http://windows.microsoft.com/en-us/windows7/help/upgrading-from-windows-xp-to-windows-7#T1=tab01
- http://winsupersite.com/article/windows-7/clean-install-windows-7-with-upgrade-media-128512
Be careful of what you purchase and from whom. Retail sales of Windows 7 ended on October 31, 2013. If the price of the copy of Windows 7 you are thinking of buying seems too good to be true, it probably is.
Finally, before you do anything, check your computer manufacturer's web site to make sure that Windows 7 drivers actually are available for your computer. The "Upgrade Advisor" is not necessarily the final answer.