Answer for:

Is windows 7 starter downgradable?

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Consider downloading 2 pieces of software: A linux distribution (Mint Linux comes to mind as GUI is Windows-like) and virtual machine (VMware Player comes to mind). Both are free. Burn them both to CD's. Then boot the computer with Linux from the Linux CD, which runs in RAM. Use the Linux to delete the Windows 7, but not the hidden partition Then load the Linux onto the hard drive. Boot the computer in Linux and load VMware Player from the CD and install Windows XP in the virtual machine.

This leaves you with a computer that boots to Linux and you can run XP as a virtual machine and you have the Windows 7 image in case you want to revert the computer to its original format. The downside is that the XP will run slower than if it were the native OS. The upside is you may find you can do a lot in the Linux, which will run faster than native Windows 7 or XP. And the Linux requires no drivers as they are all included in the distribution.