As far as the versions, I agree they are stupid and WIN7 will be just as bad. I have read where it would make much more sense to have XP and then you could add packages to make it work with businesses, etc. Steven is completely correct that the app will work with all versions and, in fact, most applications do. Microsoft is not going to make a Home version that can't run Office or Adobe or whatever. WHERE it DOES make a different is with networking, specifically with a domain and, in fact, you can't even connect Home to a domain.
A lot of us joke (half kiddingly) about what is it about home someone can't understand. Those that really know (the IT professionals) will almost 100% tell you to NEVER use a home version in a business environemnt as it will always end up causing problems at some point. While Vista and XP also play well together, I firmly believe that having one version in the business variety for all clients makes troubleshooting much easier. It may not be NECESSARY in a WORKGROUP environment to have Home vs Pro or Business, but I think troubleshooting is easier. Again, when IT Pros talk about networking, they are generally talking about client/server in a domain environment, but the biggest difference between Home and XP Pro is the networking capabilities.
Please do not think I am jumping all over you on this, I am just stating an opinion from a LOT of experience and reading where if you start from scratch, try to go with the Pro or Business or Ultimate versions.
Now, back to the question. This may sound obvious, but there is a problem there that just needs to be found.
I am offering to remote into your network and look at your situation and just see if I can help. Maybe I can't, but I think it would be much easier if I use GoToPC and see if we can figure it out together.
hb, let me know if you want to spend an hour this evening kicking it around.