I recommend the new drive + Windows 7 option. I used XP on several computers and skipped Vista myself (though I did use it some on other computers). All you XP users, Win7 is no Vista! IMO, it combines the usability, eye candy, and security of Vista with the speed, un-annoyingness, and reliability of XP. Plus, on one of my PC's, Win7 was actually faster than XP! In the end, I highly recommend XP users making the switch to Win7. I have and don't regret it.