It's good you're doing pre-leap-to-new OS research. Many people don't do that.
Sounds like you're pretty conservative when it comes to upgrading (not a problem; so am I). So, I'm gonna play
Devil's Advocate for the sake of
food for thought, OK?
Considering the stability of XP and your familiarity with it, that your current software and hardware are compatible with it and due to the relatively slow market acceptance of Vista, Microsoft -- as will other software vendors -- will continue to support XP for many years, "I want to try to stay current" doesn't sound like a sufficient or compelling enough reason to me to sign up for so much self-inflicted hassle, plus additional costs for software and external hardware upgrades. (Note: I have no qualms about upgrading your computer hardware-wise per se; did that recently myself.)
Since you're an
old dog, what part of "If [the OS] ain't broke, why fix it?" does not apply here?

As a grizzled veteran of numerous operating system upgrades in my life (I'm a retired computer programmer ~ 30 years), I avoid OS upgrades as long as possible in lieu of getting my work [or hobby projects] done.
--------------------
re: Ling's add-on
The last upgrade she did was for Elements 3.0; none beyond that.
--------------------
As a low cost alternative to upgrading to Elements 6 and to eliminate the continual hassles with actions under each new version of Elements, consider buying Photoshop 7 via eBay for about $125 = instant actions compatibility (your existing ones plus a bazillion others), features like easy access to channels, curves, layer masks, more robust batch processing, saved selections AND the ability to edit actions as well as record your own.
By the time you're ready to upgrade your computer again in a few years, Vista will have settled out and THEN you could do the leap. The upgrade to Photoshop CS3 [needed for Vista] will still be around via eBay.
OK... stepping down from soapbox now. Good luck on your decision.