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CNET Labs:
Tune-up: How to upgrade your system to Windows XP
 

Step 10: Restore files and settings

To transfer the files and settings you saved earlier, run Windows' "Files and settings transfer" wizard.
To transfer the files and settings you saved in Step 5, run the "Files and settings transfer" wizard by choosing Start > Programs > Accessories > System Tools > "Files and settings transfer wizard." Move past the first screen by clicking the Next button, then choose New Computer on the following screen. When the next screen asks for the XP CD, select the last option to indicate you've already collected your files and settings. Specify their location on the following screen.

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