With the upgrade version you can do an in-place upgrade on any version of Vista. If it is a fresh install of Vista or a service-packed version or whatever, it can do an in-place upgrade. What I think TrnSilver was asking though, is will the upgrade package allow for a fresh clean install. The answer is _YES_. Absolutely, postively yes. With the one condition that there is XP or Vista on the computer beforehand. Once it recognizes it is there, you can then have it blow the thing away and clean install Windows 7 just fine. It doesn't matter if you have patches or not. It won't care. You don't even have to have drivers properly installed to get the Upgrade Installer started (provided that you boot off the install DVD).
That should answer your question, but should you have more questions on Windows 7, you can always take it to the official Windows 7 RC Support Forum located here
http://social.technet.microsoft.com/...egory/w7itpro/ . It is supported by product specialists as well as engineers and support teams. They are pretty on the ball, and usually respond quickly to posts with questions.