Sorry for the delay but I feel obliged to report back here. So I would like to inform you that the saved game transfer worked perfectly. The SH3 game save files are located in the My Documents folder and all you need to do is copy the entire folder (usually named SH3) to some other place. After the Windows reinstall you simply need to copy the folder back to My Documents. The game will see it automatically when you start the game.
And one more thing - SH3 works great with Windows Vista 32-bit with no performance loss whatsoever. In fact it loads much faster when compared to Windows XP and all this on just 1 GB of RAM. So go ahead and upgrade your OS - you won't have problems at least under Vista at all.
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