The dialog has been wide ranging—folks consistently want performance to improve (of course). As with many topics we will discuss, performance, as absolute and measurable as it might seem, also has a lot of subtlety. There are many elements and many tradeoffs involved in achieving performance that meets everyone’s expectations. We know that even meeting expectations, folks will want even more out of their Windows PCs (and that’s expected). We’ve re-dedicated ourselves to work in this area in Windows 7 (and IE 8). This is a major initiative across each of our feature teams as well as the primary mission of one of our feature teams (Fundamentals). For this post, I just wanted to frame the discussion as we dig into the topic of performance in subsequent posts.  Folks might find this post on IE8 performance relevant along with the beta 2 release of IE 8. 

Performance is made up of many different elements. We could be talking about response time to a specific request. It might mean how much RAM is “typical” or what CPU customers need. We could be talking about the clock time to launch a program. It could mean boot or standby/resume. It could mean watching CPU activity or disk I/O activity (or lack disk activity). It could mean battery life. It might even mean something as mundane as typical disk footprint after installation. All of these are measures of performance. All of these are systematically tracked during the course of development. We track performance by running a known set of scenarios (there are thousands of these) and developers can run specific scenarios based on exercising more depth or breadth.

Source- Engineering Windows 7 blog

Hope Windows 7 will have nice performance improvement...as..already heard tht......Windows 7 would not require more power as compared to  Vista.