It's not going to spit out "Windows 7" or "Windows 2000", but you can consult the following link for more information on how to break down the versions.
Was just messing around a bit with what you said but couldn't get it to work exactly so i thought i might play around with what vbnetskywalker said and i found that if i substitute MsgBox(My.Computer.Info.OSVersion) with MsgBox(My.Computer.Info.OSFullName) it will actually give you the name of the OS for example im running win7 pro and it outputs "windows 7 Professional" and on another machine i have win xp pro on it and it says "Windows Xp Porfessional" so i thought i might just update this thread if someone comes looking.
As a side note and as a person who works almost exclusively in C#, that method is not natively available in that language (although for all I know, it could be buried somewhere else!). However, you can create a reference to Microsoft.VisualBasic in a C# program and then access the above information accordingly:
= new Microsoft.VisualBasic.Devices.Computer();
string operatingSystem = computer.Info.OSFullName;