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For a nice report of its ability to run W7, download and run the Advisor of W7 upgrade on the link below. Connect all devices to your PC, so it will analyze these devices as well as for the ability of W7.
Here is the link to the download page for the W7 Upgrade Advisor:
The HP XW8200 WORKSTATION computer workstation from Hewlett-Packard is designed to meet the needs of video editors, graphic designers, educators, and businesspeople. The computer is loaded with 250GB of hard drive space, 512MB of RAM and a DVD-RW that lets your burn CD and DVD discs. The system is powered by dual Xeon 3.4 GHz processors. The computer is pre-loaded with Windows XP, ensuring compatibility with the latest hardware and software.
Combining the highest processing and I/O power from Intel with the latest graphics technology from leading graphics providers, the HP xw8200 Workstation delivers dual-processing performance, large computational and visualization capacity, expandability and HP’s renowned reliability. A broad range of ISV-certified 3D and 2D PCI Express (PCIe) graphics solutions are available, along with operating system choices to best fit your requirements. Supporting Extended Memory 64 Technology (EM64T)i, the HP xw8200 Workstation is engineered to meet your present and future business demands.
Get the highest performance Intel technology available on a personal workstation Intel’s E7525 high-end performance chipset for Intel® Xeon® processors supports dual processing, an 800 MHz system bus (6.4 GB/sec bandwidth) and a dual-channel DDR2 400 MHz SDRAM memory subsystem, putting increased power and efficiency behind demanding applications.