>>I'd say have two partitions. A big one for Vista and a tiny one for XP. Use XP for what won't work with Vista. I installed Vista (ultimate) on my laptop (512 meg ram, 1.7 ghz) and it it worked rather well. I had some problems with what seems to be stuff related to the video side (chess game). So I guess that this was caused by my 512 meg ram.
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>With the cheapness of hard drivers, I would say to have a dual boot with seperate removable disks so that XP and Vista don't stomp on each other.

Yep even better this way.