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Upgrade from Win XP to Win 7

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Tech Support Guy System Info Utility version 1.0.0.2
OS Version: Microsoft Windows XP Professional, Service Pack 3, 32 bit
Processor: Intel(R) Pentium(R) 4 CPU 3.00GHz, x86 Family 15 Model 4 Stepping 3
Processor Count: 2
RAM: 2558 Mb
Graphics Card: RADEON X300 SE 128MB HyperMemory, 128 Mb
Hard Drives: C: Total - 147769 MB, Free - 102685 MB;
Motherboard: Dell Inc., 0RD203
Antivirus: avast! Internet Security, Updated: Yes, On-Demand Scanner: Enabled

Hi,
I have an older Win XP. With April 2014 abt. a year away, am debating whether to upgrade to Win 7 or buy a new P.C. (and new P.C.s only come w/ Windows 8, as I understand, unless you build your own & I am not advanced enough to do that).
I am confident I have the ability to upgrade my XP (it passed the upgrade test). Understand I'd need a Windows 7 CD and a means of storing current computer info on an external drive. Have checked the top 2 makers and see I'll be spending approx. $80 to $90ish for a 1 Terabyte external hard drive.
I use my computer for the usual email / Internet browsing stuff, and also for photo work and sound recording.
Anything else I should know or consider when choosing my options? Also, best sources you'd recommend to obtain a Win 7 installation CD??
Thanks in advance.
P.S. I also have a Dell Dimension 2400, Service Pack 3, maxed, w/ puny hard drive. Anything I can do with it after April 2014?? Funny answers will be accepted.

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