This is a screenshot heavy post, so bear with me, this is a tale best told with pictures.
It even remembered that their daughter wasn't an admin and brought over the Parental Controls settings.
If you've got an XP machine and you're looking to go Windows 7, I recommend you at least give this built-in tool a look.
Select that this is your new computer and pick the migration file from the external hard drive.
When you see the list of names in the migration file, click Customize.
It's a great feature and it's not advertised enough.
The problem here, and with most OS installs regardless of vendor is that, at some point, reading and comprehension is required.
I've never see an "Easy Transfer cable" in the real world, but apparently they do exist on Amazon.
Fortunately I had a small external hard drive, so I just used that since both the "old" and "new" computer were the same machine.
The machine is 3-4 years old, so I didn't think a Windows 7 install would be unreasonable.
First, I put my Windows 7 disc into the Windows XP machine and got this screen: Personally, I wish that there was a "migrate your settings from Windows XP" button or something on this page.
Some folks who apparently have a pile of operating systems discs have proposed that one could upgrade from XP to Vista, then from Vista to Windows 7, but I think that's insane.