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To upgrade or not?

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You guys were really on top of my question a few nights ago regarding the old XP desktop and the 8050 printer being connected to my wireless router and set me straight PDQ. Now I have a question about whether or not to upgrade my old Dell laptop. It's a Latitude running XP pro. The description says:


XP Pro Ver 2002 Srvs Pk 3
Intel(R) Core(TM) 2 Duo CPU
T7250 @ 2.00 GHZ
777 MHz, 1.99 GB RAM
Physical Address Extension


Now obviously I don't know what any of this means, but I'm assuming some of you will know. So, my question is this machine worth upgrading to Win 7 or even 8? If so, what would be the best way to go and what should I be on the lookout for? If not, why not? What would be the downside?


Thanks for the time and for sharing your knowledge with us beginners.


Regards,
Joe

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