I'm in the same boat re: having 2 kids under 3 and limited fiddling time. However, throwing a dual boot hard drive out of a machine previously running an Asus socket 939 board and a Venice 3200+ @ 2.4 into a brand new Gigabyte P35 chipset DS3L, core2 dualie and 4 gigs of ram took all of.... 5 minutes to call microsoft to reactivate. XP came up and replaced the HAL with no problems. After it came up I installed the new drivers, rebooted, and all was good. Ubuntu felt absolutely zero pain. It's been rock solid ever since with either OS, never a bluescreen or a weird preformance glitch.
Total cost for the upgrade: $171 for board & cpu, $12 for 4 gigs of ram. Total performance difference: OMGWTFBBQ. And that's running the cpu downvolted at 2.66 ghz, not the 3.33 it can do.
Later upgraded the video from a 7600GT to an 8800GT 512. Another 'omgwtfbbq' performance gain.
Hardware upgrades are nowhere near as bad on software as they used to be in the days of win2k. And there's no guarantee adding a whole new CPU won't throw windows for a loop either.