Basic system requirements for both versions of WindowsXP are the same...

    * PC with 300 megahertz or higher processor clock speed recommended; 233 MHz minimum required (single or dual processor system);* Intel Pentium/Celeron family, or AMD K6/Athlon/Duron family, or compatible processor recommended
    * 128 megabytes (MB) of RAM or higher recommended (64 MB minimum supported; may limit performance and some features)
    * 1.5 gigabytes (GB) of available hard disk space
    * Super VGA (800 × 600) or higher-resolution video adapter and monitor
    * CD-ROM or DVD drive
    * Keyboard and Microsoft Mouse or compatible pointing device

Certainly nothing above should be a problem for most users with reasonably modern hardware.

WindowsXP Home edition is the operating system Microsoft hopes that most of the world will choose as it's basic consumer market operating system. While, like all Windows versions, it's similar on the surface to Windows ME or other 9x derived operating systems, that similarity is only skin deep. Some key features of WindowsXP Home are...

    * NT/2000 derived operating system kernel. This brings the known power, security (relatively of course, let's not start a Linux/Windows debate), and reliability of NT/2000 to the rest of the world.
    * Windows File Protection. The Operating system actively monitors and protects key core Windows operating system components, protecting them from being accidentally altered by a wayward software package. It's a start at least to ending DLL-version-conflict-hell.
    * Protected Kernel mode operating system. Applications and hardware cannot directly access the operating system, protecting the OS core from corruption and greatly improving reliability.
    * Process Seperation. Seperate applications run in their own protected memory space.
    * Side-by-side DLL's. The Operating system allows for different file versions of the same DLL to reside safely in the system, yet another step towards eliminating DLL-version-conflict-hell.
    * Easy Setup Wizards. Wizards are available for virtually every aspect of the system, be it setting up an internet connection, file sharing over a home lan, migrating files from another system, ect...
    * Built in Internet Firewall. By default WindowsXP activates it's own built in Internet Firewall. Basic in features it is configurable, and supports logging. A welcome acknowledgement from Microsoft of the realities of modern internet life.
    * Credentials Manager. A secure store for password resources and information used on various network resources (email, http, ect)
    * Dynamic Updates. WindowsXP automatically looks for device or OS updates and patches for you, and can be scheduled to check for updates periodically, and install updates either attended or unattended.
    * Fast User Switching. Allows easy and fast switching back and forth between different users without having to reboot, or shut down applications (note: this may require more than the minimum recommended system RAM to be useful)
    * New Task bar, Start Menu. Simplified Start menu, and taskbar grouping capabilites, designed to reduce clutter.
    * Advanced file management tools, and file indexing. Additional Explorer view modes (such as thumbnails), and file indexing, make using and finding files much more convenient.
    * System Restore. A welcome feature first seen in Windows ME, which allows you to recover from serious system problems by "rolling back" the operating system to a previous good state.
    * Compatability Mode. The ability to "fool" applications into thinking they are running on a different OS (Win95, Win95, WinNT, Win2k) in case of compatability issues with legacy software under XP.
    * Native DualView support. Allows (on supported cards) the ability to spread your desktop across 2 monitors with 1 graphics adaptor.
    * Cleartype. An enhanced screen technology, primarily intended for LCD panel displays, to sharpen the display of on screen text.
    * Remote Desktop Assistance. Allows you to give permission to a trusted friend, or system professional, to gain access to your system, and help you diagnose problems.
    * Native CD burning. Roxio supplied native "drag and drop" CD burning capabilities.

I could go on and on and on, but by and large these are what I feel are the fundamental "goodies" available with WindowsXP Home edition. Newer/advanced versions of some old Windows favorites (or not, as the case may be :D), like Internet Explorer 6, Outlook Express 6, Messenger 4, and WindowsMediaPlayer 8, as well as native DirectX8.1 round out the features.