My Win 7 issues (Black Screen of Death) were Graphics card related and believe they were way worse than a Blue Screen Of Death.
Google them, theres alot of Black Screen of Death issues out there.
But yes, Win 7 is great for alot of people, as is Win 8....
Its sensible in reference to the OP the upgrade path should be to Win 7, especially if no hardware will be upgraded....
However Win 8 has been out for a while now and its tried and tested and pretty darned good, and lets not forget that under the hood its just another Vista service pack (as was Win 7)..and a good one it is too.
Win 8 Metro sucks tho if youre not using TScreen, but you get used to it, and 8.1 helps.