stay with vista home or upgrade to windows 7 home?

This is plenty for Windows 7. I would definitely recommend upgrading to Windows 7. It is faster than Windows Vista and has a lot more features and security.

It is definitely good enough to handle Win7. Vista is a terrible operating system. I'd actually take a Mac over Vista, and that's saying something. It's power hungry and prone to errors. It's also very difficult to navigate. Win7 on the other hand is a pretty solid operating system. It's like XP (which was awesome), but with some new, cool features. It also runs very well on laptops.

However, that computer you have seems to be fairly old. For that reason, I wouldn't drop the $150 on a new operating system, but would instead buy a new computer if you really wanted to upgrade. Just FYI, for better or worse, Windows 8 comes out Oct 26. If you buy a computer right now with Win 7, you should get an option for a $15 upgrade to Win 8 when it comes out. Of course it could be as good as XP, or end up another Vista...

Your specs are way pass the minimum requirements for windows 7 , vista has so many problems with it is why microsoft came out with windows 7 got real good reviews and also 32 bit is good for multi-tasking not good for gaming the 64 bit is , the only thing that is missing is a good graphic card for running areo and a good psu to power it up

Yes, you can upgrade to windows 7, actually win 7 32 bit only recognize 3.5 gb

so you had better to run windows 7 64 bit

recommend you to get windows 7 key and download on www.getsoftwarekey.com, it is cheaper and wroking great on my laptop