Yes, this is Vista Home Basic, you get what you pay for, a very good operating system without a bunch of eye-candy using up system resources, which makes it a good choice for an older computer upgrade or building your own system. You just have to ask yourself if you really need Media Center, DVD Maker, more Windows games or the RAM devouring Aero Glass desktop look. If you look around there are free DVD makers, free games and probably free substitutes for Media Center. But if you are going from XP to Vista I do recommend a clean install of Vista instead of upgrading XP. So it's your choice if you want Vista Basic or Vista Ultimate Bloatware.
Get more detail about Windows Vista Home Basic with SP1.
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