I Just Bought A Acer Aspire One Mini Notebook 8.9…it Has 160gb Oh Hard Drive And 1gb Of Memory Ram..?

Okay so i just bought a ACER ASPIRE ONE MINI NOTEBOOK 8.9…
It has:
Intel Atom Processor N270
(1.60GHz, 533MHz FSB, 512KB L2 cache)
Windows XP Home with Service Pack 3
8.9-inch WSVGA Acer CrystalBrite TFT LCD (1024 x 600)
Mobile Intel 945GSE Express Chipset
1024MB DDR2 533 MHz SDRAM Single Channel Memory
Integrated Intel Graphics Media Accelerator 950
160GB SATA 5400RPM Hard Drive
Memory (RAM): 1 GB
Now i want to upgrade to atleast windows vista home premium because i do photo editing, and have programs like the photo editor thats like photoshop.. and adobe reader..flash player..air…and itunes.. and maybe some pictures..
I also realized that laptops with vista home premium have 2GB memory RAM.. and 320GB on the hard drive.. im guessing it takes up alot of space… im really sick of windows xp pro and home.. its either vista or windows 7..
Yes this is long..now how do i go about being able to either have windows vista home premium or windows 7 with enough space to have my programs…does it matter what maker makes the gb thingy..and how do i put it in?
sorry i been searching for 2 days and thers only half answers.and when i called the company to ask hey tried to sell me stuff