I consider Windows 7 an improvement over Vista for sure. XP is nice and stable now but look how old it is. All dozen or so Windows 7 installs have all been seamless for me so far. No more fighting to find a driver that actually works.
Just a personal opinion, of course.
As far as actual advice, You could alternatively use WinAmp Remote to stream from your own PC to any other Internet device. I used it for a while and it worked well. Definately works in XP.