I made an interesting discovery this morning. I have a Canon HFS10 that produces m2t files. On my Q6600 under XP32, with 3Gb of RAM, VLC would not play them smoothly, so I always transcoded with Upshift just to be able to look at them.
Now VLC plays them fine on the same machine under WIn 7 Home Premium 64, with 8Gb RAM and the same 7200 RPM hard disks.
Wow.
Whether I should have spent $200 on memory and $119 on the WIn 7 upgrade was really not clear, but lacking $1500 to build an I7 machine just now, it was my only choice. The improved performance makes it seem like a worthwhile investment, I am hoping it will get me through until the price on the 980x comes down.
With the m2t files, Vegas 9.0e 64 bit previews fine, rendering is slower than I would like, but it works.