There are a number of limitations that apply to Home Basic. It’s support for Aero, the glasslike user interface that was introduced with Windows Vista, is only partial, while Home Premium users can take advantage of full Aero support. Limited Aero support is only a problem for computers lacking in hardware, as it is still possible to scale back with Windows 7 Home Premium, but with Windows 7 Home Basic, you are limited regardless of how capable your computer is.
Aside from visual limitations, there are also limitations in terms of it’s functionality. The Home Basic does not come pre-installed with the Windows Media Center. This software centralizes the media needs of the user, and adds TV functionalities. It lets you watch TV online, and even acts as your DVR by recording the TV shows that you like via a hardware TV tuner. You can also use the media center to watch movies or videos, and to browse through your photo albums. All of this is still possible with Home Basic, but you would need to access individual applications, like the media player and photo viewer.