People said the same think about going from 98 to XP Kaz
I dont think that anyone who got used to XP would go back to 98 now though.
Vista will be the same, yes it has its own little quirks but once you get used to it it has some nice features that arent available on XP, as you have now found out re the folder user permisions.
If you are dubious about soley using Vista then there a few ways to do it.
I have never liked the upgrade option form one windows OS to a newer version as I always prefer a clean installation.
The easiest way I have found is that if you have SATA drives in your pc then add another drive, if you can (a) afford it and (b) if you have room in your case.
Disconnect the other hard drives, connect the new drive and install Vista on that drive.
Once its installed you can connect the other drives and nothing will have been altered in anyway.
Then enter the bios and tell the pc to boot from whichever drive has the OS on for either XP or Vista, whichever one you are going to use the most often which at this stage would probably still be XP.
Each time you start up from now on, the pc will boot into XP.
If you want to boot into Vista then simply restart the pc and hit F8 (on most machines) to bring up the BBS popup menu ( boot menu) and select the drive that has Vista on it.
Your pc will now boot into Vista, take note that all your data will be the same but Vista will probably have called its own drive C and will probably have renamed the other drives as it likes
On the next reboot if you do not press F8 then it will boot back into XP and the drive letters wil be as they are now
Another way is to "Dual Boot" it.
Again a new seperate drive is the best option subject to (a) and (b) as mentioned earlier but if you have room on one of your existing drives then you can create a partition on one and install Vista to that.
When you boot up you will get the option to select either XP or Vista on each boot up after that.
The third way is to install a program that allows you to run a "Virtual OS", this will create a virtual drive that you can install any OS on and actually run it from inside XP, just like starting another program.
Microsoft has a free one but I havent tried it, or you can get something like VM Ware Workstation 6 which I have tried and found it to work quite well but its not free, usually
It doesnt allow the full Vista experience for the Aero graphics due to a program limitation at the moment, later versions may do but as far as I can tell from limited use everything else works fine
I hope that helps and if you decide to try it by any of those methods but need better explanation or help then get back to me