Hi and Welcome!
Seeing your specs tells me you should definitly be able to run Windows 7. As you have 3GB RAM, you could/should probably go 64bit.
Normaly, all drivers you should install by themselves, but it is a good idea to create a copy of the drivers beforehand.
Performance... Yes, probably. I've noticed Windows 7 to be faster that XP, on the same specs, but it can vary a lot.
You shouldn't have any problems, but if you go 64bit, check for compatibility of your softwares.
Your best shot at finding all of this out is to run the Windows 7 Upgrade Advisor. You can download it here:
http://www.microsoft.com/windows/win...e-advisor.aspx
Hope this helps

Fire Cat