I am Vinod. I will try my best to help you resolve this issue.
To transfer the playlists:- From windows xp, open itunes. On the top of the itunes, click on File > Library > Export playlist. You may have to do this for every playlist you have. Export it to the desktop. Then copy those files into an external hard drive or flash drive etc and copy it into the desktop of windows 7. Now, open itunes in windows 7. From the top of the itunes, click on File > Library> Import playlist and select those files saved in the desktop. This will import the playlists into the itunes.To transfer the songs:- Most probably the songs are located in My Documents > My Music > iTunes > itunesmedia in your windows xp. Copy the itunes media folder and transfer it to the external drive and paste it somewhere in windows 7. Then, open itunes from windows 7, and from the top of the itunes, click on File > Add folder to library and select the itunes media folder.
Our problem is that our xp computer does not operate and we can only move our back up files to the windows 7 computer without the export option...
Ohh..sorry to hear that. Now there is no way to retrieve the playlist information. We can add the songs to the itunes from whereever they are, but unfortunately there is no way to retrieve the playlists.