I had to decide what to get for my older laptop... The original hard drive failed and took the recovery partition with it, so I was pretty much going to have to get a new license for that laptop no matter what OS I got, since IBM/lenovo is pretty useless on helping get back a lost recovery partition. Their solution is to buy a whole new drive from them.
In any case, I went for an OEM copy of win7 home premium, 32 bit since it is an old laptop and 64 bit wouldn't work on it. I could have slapped a spare copy of winXP on the laptop, but after trying out the win7 beta and RC, I liked how the old laptop responded when running win7. It seems more responsive and with only a couple of minor glitches, I've had less trouble with win7 than with winxp.
To be clear to answer the original question, I'd go with an OEM copy to get the lowest price, and make sure you get the right version (32 vs. 64 bit) since the OEM copy doesn't come with both like the retail upgrade and full packages do.