Windows xp sp3 upgrade

[javsto]

Im using an old pc that I had in my closet for a few years since my laptop broke down awhile back. The desktop has xp service pack 3 on it and i want to upgrade to windows 7. is there an upgrade disk that i can use or which basic package of windows 7 do i need to get? Ive seen some nice prices for 7 starter to premium disks on ebay but ive been told that wont work for me. any help?

p.s. here is an F,M,K for your troubles