I would recommend XP. Most software is optimized to run with XP, I have 2 PC's, one with XP (AMD4400 , 2 gig ram, Nvidia 7950)and the other with Vista (AMD6000+, 2 gig ram, Nvidia 8500GT) and have noticed noticable slowdowns and performance hits on the vista machine.
The game I am using them on is Everquest 1, and we all know how old that game is, even with the graphical updates it's still old and both my rigs should run it with ease.
Once I noticed the performance hit, I re-formatted my Vista machine and installed XP, since then I have noticed performance improvements.
I am not saying Vista is a bad OS, because it is not. In fact it is an excellent OS. It just needs a few more updates, and once the next major service pack for Vista is released, it should correct many issues that it currently has.
My 2 cents
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