Vista Ultimate upgrade question?

I bought and download vista ultimate upgrade from microsoft site.

I also bought a new laptop but it came with vista home basic. The spec. are:

Processor: Intel® Core™ Duo T2250 (1.73GHz, 2MB L2 Cache, 533MHz FSB)

Display/Screen: 15.4 inch Wide Screen XGA Display with Truelife

Memory: 2GB Shared Dual Channel DDR2 SDRAM at 533MHZ, 2 DIMM

Hard Drive: 80GB2 5400rpm SATA Hard Drive

Optical Drive: 8X CD/DVD Burner (DVD+/-RW) with double-layer3 DVD+R write capability

Video Card: Intel® Graphics Media Accelerator 950

Primary Battery: 53 WHr 6-cell Lithium Ion Primary Battery

Wireless Networking Cards: Dell Wireless 1390 802.11b/g Mini Card (54Mbps)

Questions:

1) Would i be able to upgrade?

2) If i upgrade to vista ultimate, would it run smooth and fast?

3) Do i need to reenter the product key since its already genuine?

4) do i have to burn it into a dvd?

5) would i have all my files?

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