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I upgraded my girlfriend's HP Vista laptop (Don't know the exact model) to Windows 7 Home Premium and I had no problem in doing so. In terms of compatibility, I had no problem with the drivers after.
As for the mute button turning orange, hers still turns orange and works. Putting Windows 7 to replace Windows Vista increased the speed of her laptop quite a bit.
IMO, you should do it and you'll be happy with the results =)
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