Wish I could be more help.  I am still using XP Sp3.  However, everything I have heard from people I trust is that Win7 is actually pretty nice and performs well.  I do think you are not going to be able to really trouble-shoot well until you can  afford more memory.  1Gb is low even for XP.  I would say stick with XP until you can afford to upgrade your system.

I know that a friend whois very resistant to change, particularly change that makes it harder to do things the way he likes to do them, boiught a new laptop with Win7 (coming from XP) and loves it.  Never has the DNS or IP problems.

The other thing I would ask-- did you go out and buy the software to upgrade an older machine.  My personal rule of thumb is I never upgrade M$ OSes.  I wait until I buy a new computer with the new OS pre-installed.  Have never had an upgrade install other than SPupgrades, go well.

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