Windows XP or Vista?
XP
Maybe I'd need to use Vista for longer periods of time to understand its strengths, but from what I know, there's no compelling reason to upgrade from XP, which is mostly stable and runs all of my applications.
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Vista
if you currently have XP, obviously no need to upgrade to Vista & you're probably just causing yourself un-needed issues
If you are purchasing a new computer, you will get Vista, there is no point taking a step backwards & asking for XP, as long as you remember to make sure that it is a 32-bit Version of Vista & not 64 then you should be quite happy with compatibility
the 64-bit edition has its moments, but its catching up quite nicely
also, if you dont have office, dont bother with office 2003, as office 2007 is just about the same price & is providing you much better functionality & a better interface for those who are forever trying to find functions & figure out how to do tasks
