Microsoft’s decision to remove Internet Explorer from Windows 7 in Europe means users will no longer be able to upgrade in place.

Until now, Windows Vista users have been able to upgrade to Windows 7 and retain their existing applications and data.

However, Microsoft says that anyone installing the new “E” versions of Windows 7 will have to start from scratch.

“The E versions will require a clean install,” a spokesman for Microsoft Europe told PC Pro. “They will need to rebuild their default settings after installation.”

The decision will cause great inconvenience to Vista owners, who will now have to reinstall all their software and re-copy documents, photos and other files back to their PC post-installation. XP users didn’t have the option of an in-place upgrade in the first place.

Although Internet Explorer 8 will be “removed” from the operating system itself, Microsoft will still effectively be bundling the browser with retail versions of the OS. The company will provide an IE8 CD-ROM with all copies of Windows 7, while PC manufacturers will be offered the browser for free to bundle with new PCs.