Running KDE4 w/ compiz-fusion right now. Unbelievably smooth on 512Mb RAM. Running at work with two apps on wine, firefox, kmail ...
I've been a Gnomer since my Linux life started, but I think I'll be looking more closely at KDE 4. It's come a long way from the days of this ancient ZDnet article when KDE 4 was going to "rival windows": http://www.zdnet.com.au/reviews/software/os/soa/Linux-desktop-KDE-2-2-1-rivals-Windows/0,139023442,120260805,00.htm
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Team up the new KDE with Compiz and you've got an unsurpassed graphical user experience ! Blows Vista right out of the water and runs on much less powerful hardware too!
Behold, the power of open source!