Windows 7: The Windows 98 of Vista
Windows 95 was an exciting time for computers. We finally got rid of the Windows 3.1 method of running a clunky visiual interface on top of DOS and things were good. The problem was compatibility. There were issues with legacy software and device drivers. The difference was Windows 95 was SO much better than 3.1 people delt with it. When Windows 98 came out all of the bugs were worked out already, so if it worked in 95, it worked in 98. Software and devices were now compatible.
Fast forward 10 years and Windows Vista is released and the press destroyed it. Everyones printers broke, software didn't work, User Account Control (UAC) would always popup and harass you that your programs aren't trustworthy. Years after it's release people were still afraid to upgrade to it even if they haven't tried it. A year after it's release most of the issues had been worked out as long as you upgraded all of your software.
On October 22nd, Windows 7 will be released officially. What's the difference between Vista and 7? Polish. Windows 7 has no dramatic new features compared to Vista but it's polished. It's faster, thinner and most importantly in the last 3 years all of the software and devices have been designed with Vista in mind.
Should I upgrade?
The upgrade price for a home user is $119. If you are running Vista you most likely won't notice any big changes worth the price investment. If you are running XP, than it may be worth it for a fresh install or you may be in the market for a new computer.
If you are a buying a new computer, get Windows 7. There is no need to fear it and when I sit an XP computer it feels broken, old and slow.