So my aunt from mexico gave me her computer and since its from Mexico its all in Spanish. The operating system is windows 7 starter. My question is if I upgrade the operating system to one I bought in the US that all the settings will change to English or the I have to upgrade specifically to specific version to change the language?
You should upgrade to Windows 7 Ultimate, it has Multilingual User Interface (Language Pack) support. You can install the English Language Pack from "Regional and Language settings" in "Control Panel" in Windows 7 Ultimate.
You can do an Anytime Upgrade to Windows 7 Ultimate which will preserve your personal files and settings: