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I just built a new gaming pc (waiting for more money for gpu and more ram). I am currently using ubuntu on my desktop. But I have an old windows xp professional disc. Would I be able to update to windows 7 without having to buy windows again?

You cannot upgrade from XP to 7, unless you go XP --> Vista --> 7.  You will have to do a clean install over XP to use 7.  Also, if you do not have a product key for Windows 7, then you will have to purchase one.  Simply owning XP does not mean you can get a free upgrade to 7.

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Actually, you can only do XP -> Vista -> 7... but you will be stuck with a 32-bit OS, as XP is 32-bit.

You won't enjoy your 64-bit CPU to it's fullness, nor additional security that it provides, nor be able to address 4GB or more of RAM.

So assuming you want to take full advantage of your new hardware and want to switch to a 64-bit OS, you need to a clean install from XP regardless.

If you are a student, check with your school if they are part of MSDNAA or Dreamspark Premium. If so, then you have Windows 7, Windows 8, and soon Windows 10, among all other Microsoft software available for you, for free.

If not, then you buy Windows 8.1 for a fraction of the price at Microsoft Store for students. Only 70$ U.S

http://www.microsoftstore.com/store/msusa/en_US/pdp/Windows-8.1-Pro-for-Students/productID.288769600

And when Windows 10 will be released, you can upgrade to it for free.

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