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FWIW, I've been running Win7 since the beta versions (2 years) and find it to be excellent. I can really find no fault except the default quick launch taskbar I hate, I change it back to the old school method. But other than that, the kernel is the most optimized Microsoft has delivered in ages, small footprint, rock solid, and comparability has been great.
I gave up XP over 5 years ago when I switched to Vista. Vista sucked. Seven doesn't.
You should just use whatever makes you happy. For me, that is Windows 7 because I am a computer geek, and don't want to use a 9 year old operating system. In computer years, that is 300 years.
But I suspect that your needs are quite different than mine. If you have to ask why upgrade to Windows 7 vs XP, then you probably are happy with XP and don't need anything else. If you build your own system from scratch, you can elect to install XP on it if you have the old disks. If you buy a new PC from an OEM, it will not come with XP, and you may run into some driver problems trying to install it. So that is probably the major difference for a typical end user: support.
I use windows XP on the virtual machines under my apple mac os X. I have windows 7 on bootcamp and on virtual machine, but I give the XP 4GB ram for each virtual machine and it's working fast and stable.
* it just works & does not crash
* works with latest hardware & drivers are easy to deal with
* 64-bit works well & runs 32-bit apps better with more mem
* security has been non-issue (run MS security essentials)
Note: I only run trading stuff on my trading computer, no other crap, except a browser.
Only complaint is that it does not deal with legacy apps seamlessly. For example, Tradestation requires me to say it is ok to run via a dialog box due to compatibility.
You could probably fix that if it is the "Run as Administrator" issue. But UAC has been around since Vista, so 5 years or so, it's really up to TradeStaton (software developers) to stay up to date with "the times"
I assume that you are talking about Windows 7, as you did not confirm it.
A note on Windows XP:
* it just works & does not crash
* works with latest hardware & drivers are easy to deal with
* 3GB of mem are enough, as XP is not ressource hungry
* security has been non-issue (run MS security essentials and AntiVir)
I actually had lots of problems with XP crashing, and it usually had to do with the drivers. Clean installs work great, but I had issues the longer the machine ran.
3GB can be enough, XP is not resource hungry, but the apps can be (which is true for w7 also).
Nothing wrong with XP, but for me, after running win 7, that is all I would install on a new system.