First Point:
You should be able to install Vista. The worst thing that will happen is that you will have to call Microsoft to activate it. No big deal.
Second Point:
If you are going to go with any more than 3GB of RAM, you should get a 64 bit version. If you stick with a 32 bit version, you will only be able to use about 2.5 - 3GB of what you install. This has to do with how the operating system addresses and handles memory. 32 bit versions are limited to ~3GB, while 64 bit versions are limited to around 128GB.
Case in point, I triple boot in Linux (32bit), XP Pro 32bit and Vista Business 64bit. Even though I have 4GB of RAM on my system, the Linux and XP operating systems can only use about 2.4GB (I have a graphics card with 512MB or RAM on it, which also must be addressed by the OS), while the vista version can see it all.
That brings up another point I should mention (enough points for you yet? :p). The memory on your graphics card must be handled by the OS, too. So, if you have, say, an 8800GT like I do with 512MB of RAM, that will lower the overall system memory that the operating system can use by that much, dropping you from about 3GB to about 2.4GB.
Intel Core 2 Quad Q6600 @ 3.2GHz
4GB Mushkin DDR2 1000
Kingwin Mach 1 1000 watt Power Supply
Asus 4870 x2 graphics card
Gigabyte GA-EP45-UD3P motherboard
Cooler Master HAF 932 case
Samsung SyncMaster T240
3DMark Vantage:
X7241 (all settings maxed)
CPU: 11207/GPU: 7109