Usually that type of upgrade only requires inserting the XP disk when asked.
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Windows 7 has a built-in imager: start | maintenance | backup and restore.
I usually use an external disk. But a 2nd internal disk works fine.
The standard compression is OK. Don't need to create the repair disk each time.
A most important bit:::: after imaging, use windows explorer to open the windows image folder and RENAME the image (add date/time,...). Otherwise windows will just replace it next image. Nicht Gut.
Also: I usually stop hibernate and page file to reduce image size:
hibernate::: cmd prompt, run as admin, powercfg /h off
page file:::: system properties set to none, click the set button, restart
verify the file is gone: windows explorer, view, show hidden files, and system files
look at the C: disk, delete page file if it is still there, emplty recycle bin.
This also depends upon the size of the disk that will hold the images. If lots of room no need to stop the swap.
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Browsers: sometimes I have to add 3 enters to get a line feed.