The progster and I recently collaboarated on and completed construction of very similar computers, as he described in his post above. We're getting some good experience on the trials and tribulations of DIY computer building and employment!
As progster mentioned in his post, we selected different operating systems for our builds. Both of us reviewed the 32-bit and 64-bit versions of XP and Vista. We both concluded that the 64-bit versions are not yet attractive enough to use for the kind of system we wanted to build. Vista was attractive to me for many of the same reasons as progster posted. However, after much cogitation I finally chose XP Professional for my build. The primary reaons were:
1. My distributed home network uses Ximeta NDAS technology for network accessed storage. This technology is often faster and more convenient for small business users than the more common (and more flexible) NAS technology. At this point in time, Ximeta's Vista-compatible NDAS driver is not stable on my XP machines (my other machines on the network would retain Windows XP regardless of OS choice for the new machine). Since Ximeta requires that all machines sharing NDAS devices use the same NDAS driver, and since network transfers between machines is a critical part of my business, this problem either rules out Vista temporarily or would require me to invest in more expensive NAS storage devices.
2. My HP scanner has no Vista driver, and HP says there won't be one (it's an older model). So going to Vista would require me to purchase a new scanner.
3. A minor reaon for me is that Vista uses much more memory than XP and is a little slower than XP. Since my intended use for the machine includes some very speed critical and memory intensive work, this makes XP a bit more attractive. Memory would not be an issue for me if it could be expanded to 8 GB. But 4 GB is the limit for 32-bit operating systems, and only about 3 GB of that is really usable. Any memory the operating system hogs is memory not available for apps and in-memory data. The speed advantage of XP over Vista is not very much, but see my comment below regarding XP Service Pack 3.
4. Another minor reason for me is that I'm not fond of the new Vista interface. However, it can be retro-configured to some extent and if there were no other issues with Vista I would have selected it anyway.
After learning that Windows 7 will be released in just a year, I decided to just skip Vista and hold out for Windows 7. By that time, I will hopefully upgrade scanner and network storage hardware/drivers. And with some luck, perhaps more software vendors will support the 64-bit version of the operating system, making it attactive enough to procure. This will enable breaking the 4 GB memory barrier and running faster apps.
My recommendation to anyone faced with a decision between XP and Vista is to see if all your hardware and software is fully supported in Vista. If so, I would definitely recommend Vista for all the reasons progster described, especially if you like the new interface. An additional advantage is that installation of Vista is probably easier than XP. For example, if you're using a recent RAID controller, Vista has many of the drivers already. XP will require the drivers to be installed via floppy using the old "F6" method during operating system installation. This can be a pain.
If, like me, you find that Vista falls just short for your situation, XP will be supported for a long time. Service Pack 3 is going to be released for XP early this year, and from beta tests (see
http://www.pcworld.com/article/id,13991 ... ticle.html ), it appears that this service pack will widen XP's speed advantage over Vista even more.