Win 7 upgrade vs. full version

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Is the upgrade disk you by from the store able to be installed to a newly formatted hard drive? I only ask, because when I bought the upgrade to Xp from Me many years ago i accidentally formatted my C:drive and wasn't able to re-install XP. It said I needed a full version installed first. I still use this computer with XP and was able to re-install only after doing a full re-install of ME. Now I want to buy a whole new computer and am trying to decide if I should get a vista machine now and upgrade to Win 7. Or to buy the full version of Win 7 and use that over Vista. any help would be apprec.
 
You have Vista you can buy the upgrade W7 with an install no problem, but not from a newly formatted drive.
 
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