I've had blue screen with XP, caused by hardware rather than software.
I vaguely remember Wordstar, but I still sometimes use WordPerfect 5.1, the last DOS version they made and IMO a superb system. There is very little in modern WPs over what 5.1 did that I find useful, and my does it fly!
There is another alternative to MS Office other than OpenOffice. Go to the Lotus website and download the new Symphony suite. It doesn't feel the same as the original Symphony (which IMO was a superb system), but it's totally up-to-date and will operate in just about any file format that's ever been invented.
I tried to buy an HP laptop in England in January with XP installed, and they wouldn't provide it. I then said I was happy to install XP myself so long as I would be able to get all the device drivers, and they said that they were now fitting devices for which there were no XP drivers and I would have to use Vista. I managed to speak to someone there that I knew, as I've bought several HP machines in recent years, and asked her what the score was. She said they aren't allowed by MS to supply XP or any XP drivers and they're told to say that only Vista will work - MS are so desperate to force this unwelcome product on us all. But she said that in fact I wouldn't have any difficulty in finding XP drivers, at least for the time being. She said that they constantly get requests for machines with XP.
I had much the same answers from Dell in the UK, but I've never liked Dell so didn't probe very hard. But it does seem that MS are threatening not to provide licences to manufacturers who support people in running XP - makes me ever more determined NEVER to use Vista. I'll switch to Mac or Linux first.