Start again? Parallels 4 /win Xp to Paral 7 /win 7

Relative newbie for VM as don't use much in way of windows apps. I installed Parallels 4.0.3848 with Win XP SP3 and it works okay. I now have a windows specific app which I use a lot (currently on separate PC). My thinking was to uninstall the WM, Win XP, and Parallels 4 and start again, with a clean slate so to speak.

Work has provided me with Windows 7 Home Premium (64bit) disk.

Macbook Pro 2.8GHz Intel Core 2 Duo 4GB
OSX 10.6.8 (will be updating to Mountain Lion upon release.)

Is this a good idea?
How do I get rid of Win XP and indeed Parallels 4 or will installing ver 7 sort that out?

Any tips or links to solutions gratefully received.

 

Just install PD 7. You should be able to open your existing VM in the new version.

If you want to get rid of the old VM, you just delete it in the VM list in the program.

Steve