Can anyone confirm you'll be able to keep your existing install of XP *and* install the "upgrade" version of Windows 7 to a different partition?
I wouldn't mind saving a few bucks by getting the discounted upgrade vs oem, but don't want to find out it'll only install on the same partition as XP, or that it deactivates your old XP license. They've done weirder things. Thanks.
No, you would have to install the upgrade in place of your XP partition. If you want to dual boot then you would need to install a full version of windows 7. When you upgrade an OS the old license key is no longer usable as it is tied to that machine. So when if you Installed XP then upgraded to Vista then Upgrade from Vista to windows 7 your machine is actually using all 3 windows keys still, not just the windows 7 one. You are are not freeing up a key. That is what the Full version is for. It has always been like that, you always have to install an upgrade overtop of your current OS and loss the previous license.
However keep in mind that with some versions of windows 7, you can use XP mode, which gives you a virtual machine running XP. So if you are wanting to keep XP around for backwards compatiblity, then XP mode (assuming you can run it) would help you there without the need to dual boot.