It's actually not saying that at all.
The report says that your computer will handle windows 7 fine, but keep in mind, you won't have aero theme capabilities
with your current integrated graphics. Meaning, if you're getting windows 7 for the sole purpose of having all the pretty futures (window previewing in taskbar, see through taskbars, etc.) then you'll be disappointed. If your goal in upgrading is to simply upgrade to windows 7 because you want to keep up to date, then you'll be satisfied.
In my opinion, if you already have windows xp, stick with it because the advantages you'll get when upgrading to 7 won't be substantial at all unless you plan on making a great use of all the little things (other than the aero theme) like the new hotkeys, etc. If you currently have vista, go for it, because vista is terrible, and your machine will perform better with windows 7.
Edited by bradumd, 20 October 2010 - 12:19 AM.