E Carson gives good advice--you need to know your computer will run 7 before you purchase it. That said Win 7 is a much better OS than XP and I would definitely upgrade. I would recommend the OEM package for $99 unless you are planning to sell the netbook soon. (The retail version is $200) Windows 8 is scheduled for release late next year (maybe) and if replacing the computer after that you probably would want the newer system. + for Carson.