XP Is not considered outdated mate that's why Service Pack 3 was released recently, that why most programs work on XP and require addition mucking around on Vista... How dare you say that with no source or anything to back you up.
I tried Vista and hated it beyond words...
Get your facts straight before making a bold statement such as that.
MS keep trying to drop support for XP. Currently the only legal way to get it is to buy Vista then downgrade the key to XP.
Unless you get a machine with very limited specs, in which case XP Home is still supported (EEE machines and the like).
Unsurprisingly MS want to move on. Vista has been a marketing nightmare, but people have very short memories. I remember moving from '98 to XP (I skipped 2k and ME for good reasons) and it got exactly the same comments "too bloated", "everythings moved", "bugs everywhere", "new driver architecture so no drivers" etc, etc.
Personally I use them both extensively and both XP and Vista are dreadful operating systems, I only use them for 2 reasons: software development (Windows as a platform is the biggest marketplace) and gaming (wine just doesn't cut it on a lot of games, Audiosurf being one).
Anyway, bit off topic, my point is that Vista is where people will have to move to, unless they wait for Windows 7, but having looked at the recently leaked pre-beta, it looks near identical to Vista in many ways, so really stop grumbling and get with it. It's not as bad as people make out.
As to the overlay issue, as already stated it's been reported several times (hence me not being too bothered about derailing) and you've had the usual replies.
One thing I'd like to ask is: do you usually run it windowed or was that just to take the screenshots? Does running it fullscreen make a difference?