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You can find some AMAZING deals on eBay.
I bought a machine for my sister-in-law, a PIII, nothing fancy for some basic computing, like you mentioned.
I think it was about $70...and super clean. I opened it up, ran some tests, it was perfect. Like new.
I even got a 21" monitor for about $140. Works great.
It might be a little scary, but there are tons of resellers who liquidate older systems that offices replace and so forth. If they have a good feedback rating, you shouldn't hesitate.
If you want to spend $400, you should be able to get a brand new (though stripped) system for that, like an eMachines package or something, if you check the local flyers.
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