1. Yes, but I wouldn't spend the money to buy it if I were using it for personal use. It doesn't give me anything I don't have in XP or MCE2005.
2. Although not empirically tested, it appears to run faster. I haven't tested GPU/Video performance specifically, although I can't imagine it being as fast with Aero and the additional RAM usage. I use it at work, so I've not had a chance to try a 3D game or movie.
3. P4 3.2 GHz, 2 GB DDR400 RAM, 64M onboard video
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