Would also recommend XP Pro.
At this time there are only a couple DX 10 games and many game developers are not using the DX 10 api's. Valve (Half-Life, Counterstrike) as a case in point.
MS tied DX10 to Vista only to force the gaming community to buy Vista. Well, the gaming community is taking to it about the same as it took to Win ME a few years ago. Valve has recently done an anonymous study on more than a million users of it's gaming service and found less than 3% are using Vista.
From the current issue of Maximum PC - not verbatim:
Valve's director of marketing says "There is no difference between running Orange Box games (HL2-Ep2, TF2, Portal) on Vista versus XP, but there are benefits to having a DX10 GPU." Users with DX10 cards will see more sophisticated features, but it is not due to using DX10 api's (which they are not), but is due to the unified architecture only available in DX10 cards. So except for only a couple of games out there right now, there is no difference in gaming between Vista and XP and you will see a video improvement in either one with a DX10 capable card.
And if you haven't yet gotten an external drive for backups - your local Fry's (among others) will sell you an OEM copy of XP Pro ($140) with the purchase of a drive.