If you don't need to connect to fileservers, XP Home is more than adequate Dave.
The main difference between the two is that Home can only do peer-to-peer networking and cannot connect to an Active Directory based domain. This means that security is slightly weaker on an XP Home system.
Other missing features are Remote Desktop, multi-processor support, multi-language support, IIS (personal web server), plus some other stuff.
Anyway, it's just BillG's way of getting an extra £50 out corporates