Parallels is indeed coming out with a product that uses virtualization to help ease the transition to Windows 7.

The software, the existence of which was first reported by CNET on Wednesday, takes one's files and programs from a Windows XP or Vista PC and packages them up to be used on either a new PC or an existing one upgraded to Windows 7. If the programs are not compatible with Windows 7, Parallels uses its virtualization technology to allow the applications to run in the newer operating system.

Parallels Desktop Upgrade to Windows 7, as the product will be called, will go on sale next month with a suggested price of $49, including a high-speed USB cable, or $39 for a version without the cable.

More: http://news.cnet.com/8301-13860_3-20001975-56.html