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I installed the 32bit Ultimate Edition on my main everyday computer, a Dell XPS M1330 laptop with 4Gb RAM. Install went flawlessly and took about 45 minutes (I did a fresh install and blew away my Vista install). All hardware correctly identified and configured. Only the nVidia display driver was not installed, but not for long as the initial Windows Update downloaded the new nVidia drivers for Windows 7.
Likes:
- The new smoother and faster desktop manager
- Faster startup and shutdown times
- New Windows Media Player user interface & configuration
- New Windows Media Center (iTunes never again!)
- New taskbar and taskbar previews
- Full screen preview from taskbar
- Desktop wallpaper slideshow
- All the many new keyboard shortcuts
- Power management features like display dimming
- Cleaner system tray
- Aero transparancy effect retained for maximized windows
- Wordpad now reading and writing OOXML format
- Ribbons for Wordpad and Paint
- Show desktop strip in task bar
- Native support for XviD, DivX and x264 in Media Player
- Dolby Digital Plus support in Media Player
- Windows Explorer Libraries
- Windows Explorer now remembers which navigation categories were expanded or collapsed, so now Network will be expanded if it was left expanded previously
- Removal of optical drives from the Windwos Explorer navigation tree, which makes sense, why have infrequently used items there
- Faster network discovery
- UPnP device discovery at network level
- Home groups and automatic printer selection based on network
- Fewer processes in memory atfer initial logon than Vista or XP
- Memory utilization lower after initial logon than Vista or XP
Of course there are all the performance improvements under the skin as well that aren't seen but can be felt in everyday use. In general, everything appears to be now better organized around user workflow rather than product features for the sake of features. I guess twenty plus years of user feedback is starting to really affect user experience design. It's clear a lot of thought has gone into user experience, more so than ever before I'd say. It's the little touches that make the difference; like how the consolidated taskbar icon for Internet Explorer 8 shows download progress:

Most of my applications are portable versions so I didn't have to do much in the way of re-installing applications, just re-pinned their shortcuts to the Start menu. I had no problems re-installing Virtual PC 2007 which I use to virtualize Microsoft Office and other environments. The virtual machines worked just as before.
Didn't like so much:
- Not being able to tile Control Panel icons as before
- Losing the little globe on the network icon to indicate internet connectiviy (you can still hover over it and get a tooltip)
- x264 transcoding* in Media Player not quite as good as PS3MS
- Having to download Windows Live Essentials, should be included by default!
- Windows 7 Virtual PC (application virtualization is welcome but prefer the OS support of standalone Virtual PC 2007)
Initial impression? Best version of Windows yet. The Linux hippies can shout "free" all they want and Apple can add as much gloss to MaxOS as it wants, I'm a PC.
*I was able to stream a x264 video in a Matroska container simply by installing the Haalia Matroska Splitter and a registry tweak to enable Media Player to recognize and add MKV files to the media library.
Useful tweaking tools, such as fixing TCP half open limits and removing watermark, found here deepxw.
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