I want to upgrade my adobe photoshop 7.0 what do I need?

Do you mean Photoshop 7.0 (released 2002)?

As Mylenium says, you cannot upgrade from Photoshop 7.0 to anything. It's too old.

Or do you mean its little brother Photoshop Elements 7.0 (released 2008)?

You can upgrade from Photoshop Elements 7.0 to Photoshop Elements 11.0.

http://www.adobe.com/products/photoshop-elements/buying-guide.displayTab3.html

What upgrade? Your software is too old to be eligible for any upgrades no matter what. Simply buy a new license of whatever product you have in mind. If you want the "real" Photoshop, get Photoshop CS6 eitehr as a separate license or with a Creative Cloud subscription as the most cost effective method. If you need less functionality, PS Elements might do. If your budget levels off at zero, then get GIMP. It's free.

Mylenium