On that machine, from what data I can find on it, with 2 or 3GB of RAM not much point in going to 64 bit even if it would take it (Windows 7 64 bit would not install on one of my older machines would not because there was no 94 bit driver for the ethernet chip on the motherboard and it aborted the installation).
You can't actually do a real on top upgrade of XP to Windows 8 (nor could you for Windows 7) but had to do effectively a clean install so you need to save all your personal data files and make sure you have installation media for your applications off the PC, do the installation of 8.0 which will (hopefully) give you a clean Windows 8 operating system -- but note that you may have to get hold of Dell's specific laptop system files for the special features on a laptop and install them afterwards.
See http://www.dell.com/support/drivers/us/en/19/product/vostro-1710 but Vista is the most recent Windows version listed.
This is a very clear set of instructions from Microsoft
http://windows.microsoft.com/en-us/windows-8/upgrade-from-windows-vista-xp-tutorial
and it contains a clear statement of how to deal with installation if you want to not log in with a Microsoft Account. This came up the other day on a laptop I was doing for a friend and the user did not want to have to enter a password every time she started up the PC.
Look down that article past the mention of a Microsoft Account and you will find the key move:
If you want to keep using a local account
Windows 8.1 is designed to be used with a Microsoft account, so we recommend that you give it a try. Simply put, a Microsoft account is the glue that holds together so many useful features of the new Windows. Without one, you won't be able to, for example, get new apps from the Windows Store, automatically sync your settings and documents between PCs, back up your photos to the cloud so you can get to them from anywhere, or see all your contacts from multiple email and social networking accounts together in the People and Mail apps.
But if you're sure you want to use a local account instead, click Create a new account, and then on the new account page, click Continue using my existing account.
You need a Microsoft Account to download from the Microsoft Store so you will have to end up making one later but if you want to avoid logging in with a password when you start the computer then follow this route.
Once you get 8.0 installed you must run Windows Upgrade and get all their upgrades to 8.0 before you try to install 8.1 and a whole new bunch were released today the 2nd Tuesday and should be available for you soon.
It's quite a procedure on a laptop -- luckily the one I was working on came with 8.1 installed but I still had to avoid the Microsoft Account log in.
Hope I have not confused you. If you have not it could be worth scanning Dell User Forums for messages from people who have upgraded the Vostro from XP to Windows 7 or 8 ......