As with a Windows NT 4.0 or 2000 computer, once you have performed all preliminary steps, you are ready to proceed with upgrading to Windows XP, either Home Edition or Professional. Upgrading a computer running Windows Me is similar. Perform the following steps:

1. Insert the slipstreamed Windows XP/SP2 CD-ROM (or access a distribution share as described previously).
2. If the Welcome to Microsoft Windows XP screen does not appear, double-click the CD-ROM drive in Windows Explorer and then double-click the Setup icon.
3. On the Welcome to Microsoft Windows XP screen, click Install Windows XP.
4. As with Windows NT or 2000, the Welcome to Windows Setup page offers a choice of upgrading or performing a new installation. To upgrade your computer, select Upgrade (Recommended) and then click Next.
5. Accept the license agreement, and then click Next.
6. Type the Windows product key in the spaces provided, and then click Next.
7. Setup displays an Upgrade Report screen that informs you of possible compatibility issues with your computer. If you have performed a proper assessment of system compatibility issues, you should not receive any additional warnings. Select the default of Show Me Hardware Issues and a Limited Set of Software Issues, and then click Next.
8. The Get Updated Setup Files enables you to download the updated Setup files from the Microsoft website. If you have an Internet connection, you should select this option. Otherwise select the No option. Then click Next.
9. Setup copies the installation files and restarts the computer. Select the default of Windows XP Professional (or Home Edition) Setup from the boot menu that is displayed. File copying continues and the computer reboots again. Installation proceeds with the Setup program gathering information from the previous Windows installation.
10. The computer reboots and displays the Welcome to Microsoft Windows screen. Click Next and follow the same instructions as provided in steps 13 to 15 of the procedure for upgrading Windows NT.
11. After you have entered the names of users, the Password Creation dialog box asks for passwords for new Windows XP accounts. Type and confirm a password for these accounts, and then click OK. Each of the listed accounts receives the same password, which you can later change from the Control Panel User Accounts applet.
12. Log on to Windows with the username and password supplied in step 11.

Similar to an upgrade from Windows NT, the upgraded desktop contains icons for My Documents, My Computer, and My Network Places. Windows creates a Documents and Settings folder with subfolders for each user who has logged on to the computer. However, documents stored in the C:\My Documents folder remain in this folder and are not moved to the new location of My Documents (C:\Documents and Settings\%username%\My Documents).