If your doing audio, apparently still avoid Win 7 like the plague.
My sound engineering friend just installed it on his pc tower and basically there are issues all over the shop.
Don't agree with that experience. Have had no troubles recording audio in Win7. I think it comes down to if your audio interfaces has properly working drivers, especially for 64-bit Win7. Many manufacturers have been really sitting on their asses on that one. Same problem with some plugins apparently.
As for the XP mode, most users have no need for it. It is meant for those who run truly legacy, poorly coded apps that won't work even in XP compatibility mode. The XP mode is essentially full-blown XP running in a virtual machine.