Which Windows is better to install the third party applications .

any of the windows are okay..depends on ur computer specs. not on the softwares

Depend on your third party application. If you are using Window 7 and try to install third party apps from Window 95 or 98. Or if you are using Window 98 and install third party software which are meant for Window 7. Check the application to see whether it can run on what Window before installing.

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Well, in my opinion, XP is a lot more compatible, but, like racoon8995 said, it depends on your specs!

Use windows 7, I think you wont regret buying it.
If u have more than 4GB ram then buy a 64bit edition.

Even if u need to run any old application u can run that by using XP Mode in windows 7
(XP Mode available in win7 Pr0 and Ultimate)

or you can just download the free vmware to run the OLD windows XP and so the old softwares.

But I think you do not have to do all this because, in most case 80% of the softwares that work in XP will also work in windows 7.

Windows 7 has dropped support for 16bit applications( some old business sofwares are 16bit)

Try a demo of windows 7 first.