I run XPsp2 at home with SATA drives and have never had a problem (or even heard of such a concern). *shrug*
However, I'd be curious for your answers to drego's questions. Since the proc is 64-bit, I'm wondering if you are using Vista x64? I'm running Vista64 on my Core 2 Duo system here and it works GREAT. I've reinstalled Vista once due to slow down issues, but it's nothing that I don't see in XP all the time as well. I install and uninstall stupid crap constantly (I consider it part of being a geek :-p)
Too little RAM is a HUGE concern for Vista, though. Also, many start-up processes will bog you down quickly, even moreso than previous Windows versions.
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