deadman1133, I have seen Windows 8 running on similar specs.
If Vista is running well, you should be good with Win7.
I advise you to follow through steps 4 to 34 in this SF tutorial to boost your Windows 7 performance. After those tricks, you should be more or less good. Myself, I would add a bit more RAM (let's say up to 2.5 gb) though.
Download and run the Windows 7 Upgrade Advisor and it will even tell you if your programs will run on Windows 7.
The specs given for Windows 7 are Minimum requirements. Even if your PC meets the requirements, it may run like a dog. And for the minimums, I would skip Aero all together. It takes a lot of juice to run the Aero desktop.
Yeah you can upgrade your OS to windows 7. Michael has already clearly interpreted you doubt.
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