"760MB isn't enough RAM to run XP decently, let alone Vista or Win7"
Well I installed Vista Ultimate and it ran quite slow but I had to uninstall it as it didn't have the Drivers for either my ADMtek Ethernet Adapter or Realtek Ethernet Adapter or my Samsung USB Adapter for Internet. I installed Windows 7 Home Premium and had the same problem (as I don't have the Drivers on removable media for both Ethernet Adapters, so I chose to install Windows 7 Ultimate and that installed all the required Drivers.
Windows 7 Ultimate with all current updates and SP1 runs pretty good on this Scaleo P although probably at half the speed that my old Fujitsu Siemens Scaleo L Dual Core Processer did and the sound quality and graphics aren't as good on this Scaleo P as they were on my Scaleo L Dual Core.
Having read all comments and carried out my own research, installation, uninstallation and testing on which operating system to upgrade to on this Fujitsu Siemens Scaleo P running Windows XP Home Edition to either Windows Vista (still my favourite operating system) or Windows 7, I chose Windows 7 Ultimate as it seems to perform far better than Vista, so thanks for your comments and pointing me in the right direction to have a reasonable outcome to upgrading the operating system for this machine.
message edited by Danny1234