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As far as I remember, I had no problems installing Sage on Windows XP at home using VMWare. But at work we had some problems with Vista's security and access model, so me and an another guy had to find out about the Vista security system and then we got it up and running.

The combination Sage and Vista was unstable on my PC at least. So I would recommend either upgrading to Windows 7.n or trying the LiveCD which is a bit smaller in size.

But if you decide to go ahead and install on Vista be sure you install and use VMWare to start Sage. There is also a thread on the sage.windows google forum, which contains several posting related to Windows Vista.