Windows upgrade within Parallels...

Hello everyone in the land of Mac!
I have recently (finally !) been able to part with cash for my first Mac, a mid 2012 13" MacBook Pro (with Parallels to allow me to use some Windows only language software.)
As I had a number of old Windows machines I used one with XP to transfer a licence to my Mac using Parallels, thinking it would transfer ONLY the OS as I had saved everything of any consequence to my v large HDD elsewhere on my home network; if fact it transferred many things including a buggy/semi-destroyed version of i-Tunes. Undeterred I decided that the best thing was to upgrade XP to Windows 7 as this forced an os only install...suited me fine!
(I don't have and never have had Bootcamp...so the transfer from this was not open to me.)
I have gone through the hoops within the Windows environment on my Mac to buy the upgrade in the UK but after paying for & downloading the 64 bit option of Windows 7 I have an image file and a prompt screen that is asking me to determine the destination BUT it shows only two options, 1) Mac HD 2) the image file for Windows 7 and as I guess the source needs to be the Windows 7 .img it leaves me using the Mac HD as the destination but then says that it will erase everything..........so I stop and call and then go to see the very helpful retailer I bought my Mac from, but they have no-one with the expertise in today and in the UK the schools are now on holiday so the place is crammed with juveniles and the staff are vv busy....pheew!
Sorry this is a long question but does anyone know how best to use the Parallels PC to Mac transfer and then upgrade from XP 32 bit to Windows 7 64 bit?
Hope you can help
Yours, desparately wanting to not have a discussion about Windows vs Mac btw this refers to my significant other...oh and yes I know about all the benefits of Mac, see previous
Mel

I have managed to install my Win 7 upgrade to my Win XP copy within Parallels -whooop whoop!
I will confess to being not entirely certain but I think what did it was me exiting Parallels, copying the .img file to DVD and going back to Parallels and asking to create a new Virtual Machine from an image file or the closest equivalent to this description (there are only two options to choose from and I wasn't going to hit the "back" button at any point this far in to it!, sorreee guys!)... the key here was for definite "CREATE NEW"...follow your nose thereafter or please try to catch me UK time for more help (within 24hrs I'm yours ), after what I've been through I'll be only too happy, honest, there's not enough life left
A friend of mine died today, and that means I have so much more to live for, 'cos I have so much more to do that she would have done Don't ever be sorry, be driven!
PS I love my Mac now!

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