I have had very few problems with vista in the year or so I've had it, and all of those problems have been fixed with driver updates. I noticed no discernible difference in framerate between the two operating systems. True, many benchmarks put XP above Vista performance-wise, but by a margin of only 3-5%, hardly a difference you'll notice, especially with drivers increasing framerate with every release (I got a driver just a week ago that bumped my performance in Crysis quite a bit).
To be quite honest, though, the reason you're lagging so much is because of your graphics card. An x1200 will not give you great performance, Vista or otherwise.
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