Installing windows 7

Hi everybody!
It is my first post here so forgive any mistakes I make.
I have a laptop Acer Aspire 4315 with 2 disks. One XP and one Windows 7
I had a problems with the key activating my windows 7 and for that reason I downloaded again Windows 7 Professional.
I can do it for free as a student in a greek university.
I want to install Windows 7 on laptop and have only them.
I download them from the msdnaa website and when the download was completed there is the message that I attach.
What shall I do?

Thanks a lot!
I know there shall be many people to help me!!!

Hi sorriso - Welcome to w7forums

Judging from what I see the download is complete and its asking you now if you want to continue with the install.

Yeap!
I closed that window and now I just have the downloaded file which is zipped in the folder where it was being download
How shall I proceed in order to install the windows 7 over both XP and Windows 7 that I already have?

I presume you have all your data backed up and only have one hard drive that is partitioned.

Install Windows 7 to the first partition and then later you can expand Windows 7 to cover the space used by the second partition. During the install you will have the option to format using the custom install. Choose the advanced options while selecting the destination drive for partitioning and format options.

Please note that if you use Windows 7 install to remove and create partitions, there will be a small 100MB partition created for the boot files. Personally I don't want the 100Mb partition created and choose to only format the existing partitions.

Thanks a lot!
I have to unzip in my computer and then burn it to a dvd or usb or I install it from the computer?