ExtraRefined
Better than you at everything you love
I bought a low end laptop with Vista preinstalled, and it runs like an absolute dog.
From boot, it takes about 15 minutes to stabilise and become usable. I tend to get it started, then use my iPhone until it's stopped thrashing.
Have you removed all the shite cheap laptops inevitably come installed with? Autoruns is helpful here. It's true that vista on 1GB is not ideal though.
Another consideration for 7 v XP is that XP is going out of support in 4 years - if you are still using it then you will absolutely have to reinstall at that point due the the lack of security updates from then on. It's also possible that an unpatchable flaw will be discovered before 2014, as has happened with NT4 and 2k.