A:
Yes, it will. If for some reason you have problems with it working on Vista Home Basic, you can visit their website at: U3 (dot) sandisk (dot) com -- leave off the "www." in leui of the "U3." and you will find an updater/installer, but I recommend you go into the second option, which is the support section, and type in "sandisk cruzer vista" or if that does not work "sandisk cruzer windows 7" and you will find instructions on how to update it, remove the pre-installed software if you'd like, etc.
The most likely "problem" you will experience is that the software that automatically runs to open the menu will not open when the drive is inserted. This is due to a security change in Vista which prevents a file named "autorun.inf" from being able to automatically run a program as soon as the media is connected -- many viruses were being spread by taking advantage of this "feature" and having Windows run themselves any time the drive was inserted into a computer. This was a quick and easy way to spread to any new computer. So Microsoft patched that. Even so, that will not prevent you from using the drive to store files, it will only prevent automatic running of the "U3 Launchpad" software menu... until you update it or remove the software completely if that is your choice. Check out the website I referred to for more detailed information.
P.S. this information is in reference to both Windows Vista and Windows 7 -- all versions. Windows XP has no such issue with this drive or any of the Cruzer line.