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The kiosk software will run under Windows 7. The best thing is to upgrade the OS. The only issue is that UAC should be disabled after upgrading the OS.
The only problem I can see is there is no direct upgrade path from XP to 7; you have to do a full hard drive wipe. Our Kiosk came with the Pharos Kiosk App installed and configured.
It is ok for you to switch over from Windows XP to Windows 7.
After or Before the switch contact Pharos Support to request the download of the kiosk software and the drivers needed for the kiosk.
Instructions will be included with the software on how to install it.