Connect both computers to the same WiFi router.
Enable File and Printer Sharing on both computers. If you right click on a file or folder from either computer and choose to Share it, you will be prompted to turn on File and Printer Sharing. So, doing this to both the Shared Documents (all users) on the Windows XP machine, and the Public Documents (on the Windows 7 machine) would be a way to go. Microsoft provides
a detailed explanation here.
View the Available Network computers from either computer. Then, copy and paste the data you want to transfer. For example... if you have a song sitting on the Windows XP Machine in what is now the Shared Music directory, you would browse to that computer in the Network Connections available in Explorer on the Windows 7 machine, browse to that folder, select the song, copy it, and then paste it wherever you wanted it to be on the Windows 7 machine.
You don't need to install third party software. Everything you need to transfer files and folders between your computers is already included.
Now, if you meant something ELSE by your use of the phrase "transfer data" you will need to detail that.
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