Installed Windows 7 yesterday. It just works. Install process was the easiest thing ever, all I had to do was enter the key and all drivers installed automatically. It launches and closes programs much faster than XP did (even when it was new) and although it uses more ram in Aero mode it doesn't have an impact on framerate, and so far I haven't maxed out on ram. Of course, I mostly play console ports like Batman:AA and SF4 and those are designed for consoles with less ram than my old pentium 4.
Seems to copy files faster, and does a much better job of estimating the time it will take to move files. By the way, if you upgrade from XP to 7 it is well worth it to get the laplink pc mover. Win7 will move your programsfiles folder and my documents etc etc to windows.old, the mover will restore everything to its proper place and bring back registry entries as well. I had to re-authorize my D2D games and iTunes but that's to be expected.
Anyways. Much faster than XP, easier to use and more powerful. If you're rocking a dual-core system with 2gigs of ram or more you really should upgrade and enjoy faster boot times, faster program startup/shutdown, better power management, less cpu intensive active desktop and a cleaner interface.