If you want any chance of connecting your box to the college's ethernet, you'd damn well better get XP pro.
Serial ATA is not much more expensive, nor is it faster, but the cables are great. On your budget you have no reason not to go serial.
OEM means no heatsink, no fan. It's like whitebox, a synonym for OEM. Whitebox software is a disk in a sleeve. Usually cheaper. OEM is the product, and that's it buddy. No cables, no cute one step start guides, just the hardware.
In a dorm I'd be tempted to build a shuttle mini-pc; it's not like you'll have a lot of room. A fast HD makes more noise. If performance is less important that noice, consider a 5400rpm drive. A touch slow, yeah, but near silent.
Remember BIG fans turning slowly make less noise.
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I can sum up the clash of religion in one sentence:
"My Invisible Friend is better than your Invisible Friend."
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