First of all, welcome to the 21st century, Smells. That sounds like a very nice machine on which to run Vista. That 2Gb of memory will come in handy. Do you know what kind of video card you have? Are you able to see all the pretty transparencies and stuff in Vista?
Anyway, you should be fine. Vista is basically like XP, but a little prettier and more secure (they pretty much stopped working on XP security for the past year so they could claim that Vista was so much more secure).
Here are my suggestions for software. They are by no means the only choices, but they're either what *I* use or what I'd recommend to someone else to use (like, I use some weird apps for some things, because I'm a geek).
Dinner is almost ready to eat so I won't link these up right now. Maybe later. You can always Googe them. EDIT: Links added where appropriate.
Bittorrent: gotta go with micro torrent (
uTorrent).
Virus protection: anything but Norton. I use nothing but I don't download executable/program files on this machine. I think I have some freeware thing on my internet box, but it's Linux so it won't help you.
Adware: gotta use more than one. Get
Spybot Search & Destroy for sure, then maybe... on, what was that other one? Adaware? Something like that. Cort would know.
Get Office 2003 for now. 2007 isn't ripe yet.
Or get
OpenOffice, which is free, and not as good, but it does read and write common office documents.
For ripping CDs, I recommend
Audiograbber. It's easier to use than EAC (which most will recommend) and if you install the
LAME codec it's just as good.
I'd also recommend
Mozilla FireFox for browsing, and
Thunderbird rather than Outlook Express for email.
Also, if you can't afford Photoshop, or don't know anyone who can buy a copy for you (wink wink) then try
GIMP - it's almost as good, and it's free. It's more Photoshop than most people will ever need.
Download Google's free
Picasa to organize your photos. It's really good. I'm using it myself.
I'll try to think of some other "must have" apps...
Again, congrats. I'm sure you'll be happy with a nice modern working computer. It'll make every computing task easier.