Transfering files from XP to Windows 7

Hi All;

I am replacing my wife's 6 yr old Dell Dimension  E-521, running Windowds XP with a Dell Vostro running Windows 7.

What is the easiest way to move the files to the new pc?..I was thinking of using Windows Easy Transfer from MS or do I need a Belkin Transfer Cable? 

Will I need  monitors hooked up to both pcs?..one for the old pc & one for the new . I am not planning to get a new monitor.

Since Outlook Express is not used by Windows 7, what happens to the Outlook Express emails on the XP machine? Will she be able to open them on the Windows 7 pc.

I am under the impression that the programs do not transfer over, just her files & settings. So, sould I reinstall her programs before the transfer process.

Thanks for your help.

Do