If you actually want all the user settings as well as the data then first you install Windows Easy Transfer for XP on the XP computer and run it to create a .MIG migration backup file. Then copy the file to the W7 machine and run Windows Easy Transfer (built in to W7) to restore the MIGrated files.
If all you want to do is copy your data then simply make the XP folders Sharable and then on the W7 machine you simply copy them from the shared folder to Documents, Music, Pictures, Videos, and your Downloads folders