Most things compatible with XP will be fine as-is.
There are primarily some customized applications that some businesses may have that will require the special “XP Mode” add-on that works only with Professional and up.
Most games that are/were widely out there shouldn’t need the additional mode. You’re likely fine with Home Premium, but if you want to be safe, you might want to spend what’s currently an extra $50 to do Professional during the pre-order sale.
It’s very unlikely you’d need the Ultimate version. Feature-wise, it’s the same as the Enterprise version for businesses, but just the way that consumers could get it. And unless you need a couple things like the BitLocker drive encryption or ability to switch languages, there’s really not much point in doing Ultimate over Professional.
So… Professional if you want to be completely safe and may be able to use a couple things like the Group Policy editor. But unless you have some weird custom games or something, you should normally be okay with Home Premium.
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Microsoft: 240 Million Windows 7 Licences Sold in First Year
If you're a home user, you'll use Windows 7 Home Premium. At the retail level, you've got 3 choices. Ultimate, Professional and Home Premium.
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