Why don't you wait for the various reviews and comments from players once the game has been released and let that help you decide? Otherwise it's just guessing, and everyone will have a different opinion based on a 10 minute PC demo. Do you trust that?
Yeah, the stuff they're offering as extras out of the box on Ultimate aren't really worth the extra money. I'm sure things will improve over the life of the OS, but I went with Home Premium. Ultimately, I'm more concerned with peformance than bells and whistles.
You shouldbe able to play your iTunes-purchased songs with the Zune,BUT you'll have to convert them first. The following link should at least get you started: http://zuneinfo.com/microsoft-zune/purchased-itunes-songs-to-zune/
I'm not sure that's a question anyone can answer for you. It's more about personal preference. Is there anything you're dying to play on the PC platform? If not, and you're really more into the Xbox 360, you're probably wise to save your money for that and use your PC for other activities.
Unfortunately, SP1 was supposed to come out during the second half of 2007, but MS is now saying the service pack will be out in beta form by the end of the year. So, I wouldn't expect the "official" version until next year.
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