Hi there.
Modman, your Computer is above win 7 requirements, so it will run fine, but it's weakest link is it's hard drive, 160 gig is a bit small, it was huge when it first came out, 3 years ago, if you were to upgrade to win 7 i would suggest you get a 500 gig drive, then upgrade, if you must, if xp works great for you, why fix it if it anit broke? Is there a piece of software you really need or want that ONLY runs on win 7 ?
I have not touched win 7, but microsoft is a company, and it's main goal is to be profitable, this being said.
There are 2 reasons microsoft launches a new windows, first to make money, secondarely, to support new hardware, but supporting new hardware only requires new drivers and maby a new piece of software or two, not a whole new windows.
So since XP works well, and is still supported, keep it, save your money for your next cpu, in a few years, which may come with win 8 or whatever they will call the next win.
Should you decide to go ahead and buy win 7 ($$$) you will have to save all your files, pics, movies, FAVORITES, saved games, work files, real player downloads, other downloads onto CD or DVD, and win vista drivers will work with win 7, will your older software work under win 7? i don't know, and usually they will say "some softwere may not work" so goto
WWW.MICROSOFT.COM and ask them if your most important older software will run under win 7.
JohnDowe.