Currently Running Vista Ultimate 64-bit

I am considering switching to Windows 7. The question is, would upgrading to Windows 7 32-bit cause problems? Should I just continue on with a 64-bit system?

One annoying problem I have been having is periodically, my keyboard response becomes very slow. I wonder if this is a Vista "feature"?

Thanks in advance!

Well, for one thing I don't think it's possible to upgrade from Vista 64bit to Windows 7 32bit.
I would do a clean install if you want to use Windows 7 32bit. However I would highly recommend that you go to Windows 7 64bit. It will run faster, especially if you have 4GB of RAM or more. Also do a clean install of the x64 OS rather than an upgrade.

When doing a clean install, I assume I should move my data files to a different disk drive?

I also assume that I will have to reinstall all of my software from scratch after the clean install?

Sounds like a pain!

It is a bit of a pain. But when you do a clean install you know you will not be keeping any of the Vista glitches or making new ones through the upgrade.

Yes, it is a pain. The benefits you'll receive with a clean install versus just doing an upgrade is significant and you'll notice a difference. Relax, kick back and get into it. Put on some jazz music and it'll go quickly.