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Windows 2000 benefits

* Windows 2000 has lower system requirements, and has a simpler interface (no "Styles" to mess with).
* Windows 2000 is slightly less expensive, and has no product activation.
* Windows 2000 has been out for a while, and most of the common problems and security holes have been uncovered and fixed.
* Third-party software and hardware products that aren't yet XP-compatible may be compatible with Windows 2000; check the manufacturers of your devices and applications for XP support before you upgrade.

Windows XP benefits

* Windows XP is somewhat faster than Windows 2000, assuming you have a fast processor and tons of memory (although it will run fine with a 300Mhz Pentium II and 128MB of RAM).
* The new Windows XP interface is more cheerful and colorful than earlier versions, although the less-cartoony "Classic" interface can still be used if desired.
* Windows XP has more bells and whistles, such as the Windows Movie Maker, built-in CD writer support, the Internet Connection Firewall, and Remote Desktop Connection.
* Windows XP has better support for games and comes with more games than Windows 2000.
* Windows XP is the latest OS - if you don't upgrade now, you'll probably end up migrating to XP eventually anyway, and we mere mortals can only take so many OS upgrades.
* Manufacturers of existing hardware and software products are more likely to add Windows XP compatibility now than Windows 2000 compatibility.