TheJadedMieu: I'm feeling like it's time for a new computer, and I've found one I think looks good (yes, it's pre-built, please don't go into that now). The main thing I'm worried about is that it has Windows 7 (x64). I'm really worried about games not working on 7, I play mostly games from here and the occasional modern-ish game like Arkham Asylum. Do any of you have any wisdom or advice to share?
If you don't have a spare PC/laptop with 32bit XP on it and you are still heavy on older (non-GOG) Win9x era PC games (for DOS games it doesn't matter, thanks to DOSBox), I would look into the possibility of making a double-boot system with 32bit WinXP and Win7. That's what I will possibly do if I get a new PC/laptop in the near future (or maybe not, I have a couple of separate XP machines as well, but I prefer keeping all gaming on one system if possible).
Another option might be VMWare (Player) for Win7 and running XP on it, but I haven't tested it myself yet. I was more interested in installing Win98SE on VMWare, and it didn't work out that well (mainly, no support for D3D acceleration whatsoever; my understanding is that this can be achieved for XP as a host OS in VMWare).
That said, the transition to Win7 64bit for games was smoother than I feared. To me it felt a bit like moving from Win98SE to XP, ie. I was pleasantly surprised how well most Win9x games still worked on XP, even if there were some problematic ones (like those which just refused to install on a "NT system").
In Win7 64bit case, it is mainly the older Win9x games with 16bit installers that fail, but there seems to be many workarounds like installing it on a 32bit system (maybe even running in VMWare on the same system???), and then transferring the files to the Win7 system. Also, quite a few Win9x games seem to also have user made Win7 installers, you are not alone wishing to play older games on Win7. But if your old games are mostly from GOG, then this isn't an issue, it is mainly the issue with the original CD-versions of those games.
So I'd say just go ahead with 64bit Win7, and later if you feel its compatibility is not enough for your gaming needs, look into the option of using XP on the side. For double-boot though, I don't know if the only option is to install XP first, and then re-install Win7 on the side?