If you can find XP Pro for a small amount more than XP Home, I'd suggest you get Pro. But if all you can find is a $100 difference, XP Home will suffice. Here are some sites that compare the two:
http://www.winsupersite.com/showcase...p_home_pro.asp
http://www.microsoft.com/windowsxp/h...choosing2.mspx
Turin:
The paging file is what windows calls its virtual memory file. It resides on the drive partion where windows is installed by default, so you do not need to worry about it.
TweakUI for XP is available on the
http://www.microsoft.com/windowsxp/d...]XP Power Toys. In one of the tabs there is an option to change the location of system folders. This is handy for being able to not have to lose your documents, pictures, and installed programs when you need to reformat windows partition and reinstall it. You would want to copy folders such as Program Files to the data partition, then use TweakUI to change the location to the data partition, reboot, and delete the orginal Program Files folder on the windows drive.
Go to run command (windows key + r, or in start menu) and type in regedit. This opens the registry editor, which you can use to export a copy of your registry to a file, and later import your registry from a file. This is useful to do after a clean install of windows and the programs and games you usually use. When you need to reformat and reinstall windows, you can just import this archived registry and have most of your system back up to par in no time (when combined with moving critical files to the data partition).