Originally Posted by Mussels
well the thing is, while 7 will run smooth it will use about 1GB of ram.
What? That's not my experience. 7 scales to cache more when you have more memory. With 2Gb it will use about 512Mb on boot and you can do things to trim that down. You boot on a machine with 1Gb it will use about 256Mb on boot. At least that was my experience with it. Although after 8Gb or more it doesn't use much more.
If XP works and it fits the bill, all the power to you.