Is this a real upgrade?

Noob question.
My boss has given me an allowance towards a computer upgrade which is the only reason I'm thinking of doing it. Use it or lose it. This will still cost me some $$ out of my pocket so staying with what I have is definately an option. Otherwise it'd probably be a no brainer.

I don't do gaming. I use Pinnacle Studio 9 to create some videos occasionally and dump them to DVD. I do normal word processing stuff: Word, Excel, etc.
I occasionally use Photoshop CS and Illustrator and of course surf the web. I backup my digital camera photos and infrequently modify them.
I use Nero for various DVD/CD projects from time to time.

I currently have a Dell Dimension 4600 I bought around 2004:
2.8GHz Pentium 4
1536 Mb RAM
NVidia GeForce FX5500 256 Mb
Creative SoundBlaster Live! 5.1
80 Gb & 40Gb hard drives
DVD -ROM and CD/DVD burner with light scribe.
Windows XP SP2

I'm eyeing a new Dell Inspiron 531:
Athlon dual core 64 x 2 5600+ (2.8 GHz, 1Mx2)
2GB DDR2 SDRAM at 667MHz
NVidia GeForce 8600GT-DDR3, 256MB
Integrated audio
320Gb hard drive
DVD-Rom (I'll add the lightscribe DVD from my other machine)
Vista Home Premium

My questions:
-Is this a real upgrade? I mean on paper it looks like its twice the PC in some ways but will I really notice a difference?
-what kind of improvements will I see using the application I use?
-Moving from XP to Vista makes me nervous only because I don't trust Vista yet and I've been doing fine with XP. Any software issues I'm going to run into when I reinstall my apps on the new PC
-Anything pitfalls I should avoid?
-I am limited to buying a Dell (don't ask why, just accept that I won't be building my own to save some $$)

Thanks in advance and sorry if these are stupid questions. I'm a noobie so go easy on me.
 
Yeah, that will be a pretty good upgrade. I dont think you would have any compatibility issues with vista, 95% of the apps that run on XP will on vista. You would be able to do a whole lot more multitasking with little to no lag, depends on how intense the programs are you use.
 
Yeah, that's a damn good upgrade! If it doesn't cost you that much, then, YEAH! Go for it, it'll be great!
 
Heck, are you going to throw that old computer away though?

Anyway, yeah that is a decent upgrade. Even enough to notice the difference probably.
 
-Is this a real upgrade? I mean on paper it looks like its twice the PC in some ways but will I really notice a difference?

It will probably feel like 10 times the computer. I recently made a similar leap with my PC and it was really awesome to use the new machine. Enjoy!
 
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