If you have 60 GB to spare, I'd create a 3rd partition. If the Windows provided tool can't handle this, download the free Easeus Partition Master from. Then I'd reinstall XP where it had been followed by installing Windows 7 on the new 3rd partition.
That will give you a 3 way boot with the new Windows 7 being the default. Bootfrom one of the Windows 7 partitions and make the first Windows 7 the default by clicking Start - Control Panel - System - Advanced system settings. Then click the Settings button for Startup and Recovery and set the 'Default opertating system'.After doing that, you can delete the Windows and Program Files folders in the 60 GB partition and get most of the space back from that partition.I hope this helps.
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