As far as loosing the bundled software, I wouldn't sweat it. For viewing DVD's (and pretty much any video file you can imagine with no codecs to install) try Video Lan Client or MPlayer. Both are awesome programs ported over from Linux. For burning disks Img Burn is nice. It isn't fancy like but it is very good (just don't install the optional Ask Toolbar at the end). CD Burner XP is supposed to be good too (but I didn't like it).
I vote for clean install and Windows 7. Clean install of any OS will probably be a lot better than the factory image. Win 7 is great. I can't stand XP now.
About the Intel Matrix Storage Manager Driver: Why is it needed? I have the new version, called Intel Rapid Storage Technology, but I only installed it because I have a solid state drive. I have no idea why you would need that unless you are running in AHCI mode, which is pretty much only needed (or even beneficial, I hear) for RAID, multiple simultaneous user or server like scenarios, or if you have a SSD. It is supposed to have better power management, but only for drives that support DIPM. Does the stock T60 drive?
lemonstar wrote:should I just download everything I can lay my hands on from the IBM/Lenovo site?
No, that will get you a bunch of crap you don't need or want bogging you down. Read up on what all of it does. Remember I am using Windows 7, but still, the only things I downloaded from Lenovo was the display driver (not ATI driver, I got that from Windows Update as Lenovo has no official X1400 driver listed for Win 7), HotKey Functions package, UltraNav driver (not the utility), the power management driver, and Power Manager. I installed those things, in that order, after all other drivers. Speaking of which; I got the INF update utility and RST package from Intel. Most of the other main drivers, I got from Windows Update (some were newer/it was easier/less baggage attached). I'm not saying that is all YOU need, just that it's what I did and it's a MUCH shorter list than Lenovo offers for my OS. Win XP may require a few other tidbits for full functionality (if you even want that - disable/don't install anything you won't use), and if you have a mechanical HDD you may want that thing that shuts down your HDD upon sudden movement. My setup may not be the best, either, but it all seems to work pretty well. I still don't know about the Windows Updates that Lenovo offers. I am going to read up more on them.