There will be the Windows driver for the device, typically installed via Microsoft Update, and then there will be the RIM driver for the device, which comes with the desktop manager software. You should be able to CHOOSE which driver you want to use by going to device manager and manually installing the driver, but choosing which driver you want to install, rather than letting Windows search.
I have had 4.2 SP1 and now 4.2 SP2 running on Vista Home Premium, and my 8700 installed and worked without issue. There was an issue with 4.2 SP1 though, that after a while of letting it run, when you plugged in the BB, the Desktop Manager software would crash and need to be restarted. This was fixed in SP2.
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BES Admin
Network Engineer
Blackberry user since 2001.
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