You may Clean Install Windows 7 64 Bit. Follow Windows Reinstallation Guide/A Clean install of Windows 7 for best results:
http://philipyip.wordpress.com/dell-community-forums/
For Windows 7 64 Bit use the following drivers:
The current graphics card will work with Windows 7 64 bit as nVidea have it as supported but it is recommended you follow Rdunnill's suggestions about graphics cards:
http://www.nvidia.co.uk/object/win7-winvista-64bit-307.83-whql-driver-uk.html
It is recommended to upgrade your RAM to 4-8 GB - 8 GB of RAM is unofficial but stated to work in this model, Rdunnill will likely better advise with the RAM.
You may also consider installing Windows 7 on a Solid State Drive which will offer superior performance.
Note use the Digital River .iso without a product key for a 30 day trial. This will give you time to evaluate your systems performance with Windows 7 before deciding to purchase a license.