Vista, the first major new Windows version in five years, is scheduled to begin shipping on Jan. 30. New computers will include it as a matter of course. If you’re considering whether to upgrade your existing computer to Vista, here are some things to weigh:

It’s not always easy to upgrade to a new operating system. You might need to resolve software incompatibilities, upgrade security software, or install drivers. (Microsoft provides an online tool to help determine whether your computer can support Vista. For our advice on how to use that tool to best advantage, see Upgrade Adviser Guide.) Such issues may be reason enough to stick with XP. But consider the advantages that Vista offers. We looked at the final pre-release version of Vista to find its most useful and intriguing features. Here are some of them:

Visual enhancements. The first thing you might notice about Vista is the new interface. Rounded corners and shadows on windows and dialog boxes, plus shading around taskbars and buttons, create a three-dimensional look. (See video.) A more advanced graphics mode, dubbed Aero, is available with Vista Home Premium. With Aero, window edges are translucent, for example, so that you can see the windows or desktop beneath them.

New ways to navigate. By hovering above a Taskbar item with the cursor, you can see a miniature version of the task’s window. With a simple keystroke command, you can bring up a stack of active task windows through which you can rotate. Those changes make multitasking easier.

Increased control over software installation. Only the user who is set up as administrator can install new programs under Vista. And only the administrator can run programs that alter system or security settings. That is intended to prevent viruses, spyware, and other malicious software from controlling your computer or altering its settings.

Two-way firewall. Vista’s firewall not only controls what can enter your computer, but it also prevents unauthorized programs on your computer from contacting other computers over the Internet.

Still more security. A new technology called Service Hardening blocks attempts by malicious software to damage or take control of your computer. Every service must be given specific permissions to access or control resources on the computer or network. BitLocker encrypts the entire hard drive securely, in the background as you work. Intended primarily for businesses with trade secrets or intellectual property to protect from theft, it can also provide extra security for consumers. Additionally, a USB thumb drive with a key file on it must be inserted into the PC to unlock the drive in order to use the computer. Vista’s Security Center has the added capability of monitoring spyware protection and Internet security settings.

Simpler home-network setup. Vista takes some of the pain out of configuring a home network by emphasizing security and access restrictions. If an unknown computer or network attaches to yours, Vista won’t communicate with it without your authorization.

Better Media Center. Windows Media Center is built into Vista Premium and Vista Ultimate. Media Center gives you a user-friendly way to view the photos stored on your PC on a large-screen TV, listen to the music on your hard drive, watch movies and TV programs you’ve downloaded from the Internet, and enjoy other multimedia functions. The downside: content partnerships with commercial media companies, some free, others not, run rampant through Media Center. Some of those partnerships are with Movielink, AOL Pictures, Live365, TVTonic Videos, MSN TV Today, and Yahoo Photos.

Better browser security. Vista’s Web browser, Internet Explorer 7, has new features intended to foil Web sites from changing your computer’s settings, and parental controls for limiting your children’s access to the Web.

A host of new features. Vista’s search capabilities are a giant leap over those in XP. It's easy to start a search--for images of the Eiffel Tower, say-- on your PC's hard drive and then expand it to include other storage devices (USB memory sticks, removable hard drives, etc.) or even the Internet. And it’s also simple to customize a search so that only certain types of documents are indexed. Windows Mail includes an anti-phishing feature. SideBar displays free applets, or gadgets, like weather reports, stock quotes, slide shows, and more that you can download free. Windows Backup can include fixed media, removable media, or shared network drives, and it can be scheduled to back up automatically and create a full drive image backup for disaster recovery.

Vista will be sold in the U.S. in three progressively more feature-rich versions:

Vista Home Basic. This “stripped down” version will come installed only on budget PCs. It will sell for $200 for new PCs, and $100 as an upgrade if you have an existing Windows license.

Vista Home Premium. The best choice for most PC users, this version adds the Aero interface (on PCs with compatible graphics processors). It also includes:

• Media Center interface
• DVD Maker
• Movie Maker HD
• Backup scheduler
• SideShow to allow use of auxiliary displays in laptops
• Sync Center to synchronize files with other PCs over a home network
• Parental controls

Premium will cost $240 for new PCs and $160 as an upgrade if you have an existing Windows XP Home license. (For some reason, XP Pro users will need to do a “clean” install.)

Vista Ultimate. This version includes all the features of Vista Home Premium and adds:

• Support for dual CPUs (multi-core are supported in lower versions)
• Remote Desktop host (formerly in Windows XP Professional)
• File encryption (with full-drive BitLocker capability)
• Faxing
• Domain-based networking (for office networks)
• Web hosting

Ultimate will sell for $400 for new PCs and $260 as an upgrade if you have an existing Windows XP Home or Pro license.


The Bottom Line

We think most home users will want Vista Home Premium, since that version has the potential for all the visual enhancements that Vista has to offer, and has Media Center as well.

If dealing with a Vista upgrade is more than you want to tackle, there are other options. You can get some new Microsoft enhancements with Windows XP. For example, you can get Internet Explorer 7 with all its new features, Media Player 11, and for security, Windows Defender and LiveOneCare. And there’s an XP version called Media Center Edition that includes many of the multimedia features.

Or you can go with Apple. Chances are good that you will be able to run Vista on a Mac as well, once Apple updates its Boot Camp loader. Buying a Mac will get you a brand that offers excels in technical support and reliability. But you won’t sidestep the operating system dilemma entirely, because Apple plans an upgrade to its operating system, OS X, in spring 2007. That will most likely require an upgrade cost of $100 to $200.