I just got my windows 7 home premium (32 bit) last week. I want to burn it to DVD/CD. Has anyone done it correctly and turned out successful? Appreciate your help.

Ok I have windows vista but I want windows 7. So I am planning on getting windows 7 on release date. Now I have never upgraded a computer before and I just bought my laptop in august 2009. How do I successfully upgrade without losing my stuff like:
Sims 3 data, Office and school documents, music for Zune HD, and programs I downloaded to my computer.
Can I just upgrade and everything will be fine? Please help!