Differences between windows xp professional and windows 7 home premium?

I am about to purchase a new laptop for college and work purposes and I am debating whether to go for a great deal on a laptop with Windows XP Professional already installed and full MS Office Professional, or to get a home premium version of windows 7. I need to have excel and power point and word at least, if not outlook and publisher too. I simply can't figure out which would be my best option, any suggestions?
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    Google is your friend
    Also W7 has a XP emulation layer but I havent used it.
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