With a system like that you should really go for 64-bit, otherwise you're wasting some of your RAM and CPU potential. I've got x64 running on a system that's a few years old and it's rock solid stable

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Originally Posted by TrainableMan
Personally I think W7 Ultimate is a waste of money unless you need multiple language support; I like Professional for the group policy editor and Virtual PC - XP mode but if you don't need that then you could be happy with Home Premium. As for OSes other than W7, I cannot help you there.
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Yep, I'll 2nd that - Pro/Home edition should do fine unless you really need some of the Ultimate version features. There's an overview of what features each version has on this page:
Windows 7 Home Premium vs Professional vs Ultimate