I use Home Premium, and it suits my purposes fine - that is, surf the net, pay bills, etc. It also has a proprietary email program, calendar, and a few other whizzbangs. It uses Windows Media Center, which as far as I can remember interfaces with XBox (I could be wrong about this - you could confirm with the XBox website).
I would recommend at least 1 gig RAM minimum for Vista, just to run the OS, although you could employ some memory conservation strategies. For memory intensive stuff, you'll of course need more. Sorry, but I cant comment on speed booster flash.
This online article discusses Vista OEM:http://www.pcmag.com/article2/0,1895,2087792,00.asp
Also, here is a general background behind OEM:http://en.wikipedia.org/wiki/Original_equipment_manufacturer
(look for the section on "software")
Will other versions of Vista serve your needs better? I cant say from experience, but I think Home Premium might do the trick for you.
And its never noobish to ask questions.
Hope this helps a little.
I forgot to add that its a good idea to confirm that all of the software you intend to use will work on Vista. Although it has been released for a while, many software programs are still trying to "catch up":http://support.microsoft.com/kb/933305
Edited by jhsmurray, 29 August 2007 - 09:51 AM.