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...With some programs (PSP being one of them), the latest and greatest does not mean the best version of that program. 8.1 was the last really good version, but that was when JASC owned the program. Corel and some other companies don't add much to the newer version, and screw you over on the price.
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Ricky's got it right on with PSP. I've used it since version 5. When Corel took it over, it imploded. I have the latest version, and I can work with it nearly as fast as I could before, but I don't recommend it. /offtopic
To answer the question, though...I have Vista 64 with 6 gigs of ram, a Core(2) Duo at 2.80ghz, and a halfway decent vid card. I run dual monitors (until Tuesday, then I'm going back to a single to better fit on my new desk). My heavy usage is PSP, Photoshop, and graphic intensive things. I also store and play back my music; store, convert, and otherwise manipulate my book files; and yes, I love Office 2007. I'm sticking with Vista even though I have the RC of Windows 7 (on another partition) and love it, because IE8 does not play nicely with my school software. Once the BlackBoard developers fix that, I may switch to the RC for my main O/S.
My computer specs are probably overkill for my needs, but my husband subscribes to the power tool rule: Better to have it and not need it, than to need it and not have it.