Win 7 32-bit (or any of the Vista 32-bit) version will be fine. If you could bump the memory to 4GB it would help greatly. I would stick to the Home versions, no need for the Pro/Ultimate versions.
Once updated to the most recent SP and updates, they are all pretty much the same. Why are you considering Vista over a more current version of Windows?
My computer has a better performance in OS's like windows xp...since XP is having a lot of compatibility errors , i think i will try vista out...since 7 is a bit heavier for old laptop
Win 7 32-bit (or any of the Vista 32-bit) version will be fine. If you could bump the memory to 4GB it would help greatly. I would stick to the Home versions, no need for the Pro/Ultimate versions.