Windows 7 Home Premium is one of three Windows 7 editions that Microsoft has designed for the mid to high end market segment (the other two are Windows 7 Professional and Windows 7 Ultimate). Home Premium is the first Windows 7 edition that comes with all basic features included (Windows 7 Home Basic and Windows 7 Starter both miss certain features like Windows 7 Aero, Windows Media Center or Windows Touch). This edition does lack several features that Microsoft has reserved for the more expensive editions Professional and Ultimate.
It is usually not that easy to evaluate all the different editions to find a suitable one. Even users who buy a pre-build PC system should make sure that the included operating systems meets all their demands. Windows 7 Home Premium’s main advantage is its price and the fact that it offers all features that Microsoft would consider essential. Here is a small overview of those features:

