WinXP is designed to install and upgrade the existing operating system
while simultaneously preserving your applications and data, and
translating as many personalized settings as possible. The process is
designed to be, and normally is, quite painless. That said, things can go
wrong, in a small number of cases. If your data is at all important to
you, back it up before proceeding.
The upgrade from WinXP Home to WinXP Pro, in particular, almost always
goes smoothly, as both operating systems use the same kernel.
However, do you really need to upgrade? The WinXP Home and WinXP Pro
versions are _identical_ when it comes to performance, stability, and
device driver and software application compatibility, but are intended to
meet different functionality, networking, security, and ease-of-use needs,
in different environments. The most significant differences are that
WinXP Pro allows up to 10 simultaneous inbound network connections while
WinXP Home only allows only 5, WinXP Pro is designed to join a Microsoft
domain while WinXP Home cannot, and only WinXP Pro supports file
encryption and IIS. (Oh, and WinXP Pro usually costs roughly $100 USD more
than WinXP Home.)
Windows XP Comparison Guide
http://www.microsoft.com/windowsxp/home/howtobuy/choosing2.asp
Which Edition Is Right for You
http://www.microsoft.com/windowsxp/whichxp.asp
Windows XP Home Edition vs. Professional Edition
http://www.winsupersite.com/showcase/windowsxp_home_pro.asp