Also i have recycler virus in my laptop. Will it get removed after windows 7 installation

I found two links which shall help you for the recycler virus. http://bytes.com/topic/windows/answers/842078-recycler-virus-xp-sp2 to-remove-recycler-virus-from-my4650763.html" target="_blank" rel="noopener nofollow">http://m.articlesbase.com/security-articles/remove-recycler-virusto-remove-recycler-virus-from-my4650763.html

Also would like to know in which drive is it located. About the updating i found this http://windows.microsoft.com/en-US/windows7/help/upgrading-from-windows-vista-to-windows-7

i got only one drive that is c drive

Yes thats why i gave you the link. Try them

INSTALL WIN7 IN ANOTHER DRIVE; 16 G.B. NEEDED; IT WILL THEN DUAL BOOT

Installing a new OS will definitely erase all ur data from system drive and since u have only one drive, u r gonna loose it all.

In 1 my lapto I installed win7 home premium as upgrade to vista itll give you option to upgrade or fresh install upgrading will save your data including your viruses ect and will take much longer ,a complete fresh install is destructive to your data including your pet viruses enjoy ur win7 its the dogs back wheels