I Would like to Consider Upgrading My WINXP to 7-Ultimate..

Will it break my current settings and uninstall my applications ? i have been
hesitating since i keep a lot of valuable things in my (C:) hard drive.

First of all, make sure that your PC is ready to handle Windows 7.
Also, make a backup of your important files.

Of course it will delete your settings and your applications.

Or you can always create another partition and go for a dual boot.

It shouldn't delete anything. When installing Windows 7 you are given an option to totally have a fresh install or to upgrade.

keep in mind trying to upgrade between OS's often leads to more problems and hassle than you would have with a fresh install. Backing up your media onto external drives and doing a fresh wipe and clean install will benefit you greatly from time to time, as systems often slow down and get cluttered from months or years of junk piling up.

...not to mention, this will force you to organize your data and decide what's important and what's not.

Backup, backup and backup. Often this is the difference between a disaster - loosing years of work, a lifetime of memories in pictures and words - and a mere annoyance (having to restore stuff from a backup).

Thanks for the Replies i can finally upgrade my PC without any risks my pc is quite modern with a Quad Core 2 CPU and Nvidia geforce 9500gt, i think i can pretty much handle the new OS thanks a bunch !