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I would recommended XP as the way Vista is going is not very good. But seeing as XP won't be supported much longer, now is an even better time to think about converting to a Mac.
You may even get a newish 2nd hand Macbook Pro which usually start at £1300. Look on ebay for that unless you want one new.
Also would you believe it but Microsoft admit that their Office software is better on a Mac.
So even a better excuse to get a mac for your word processing. Also if you wanted to print something out, Macs dont need no drivers and all the fuss you get from windows. It just works!!