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Agreed that upgrading most OEM machines is no good. Many have proprietary slots (or things like small cases that prevent most cards from fitting) and/or just plain dont like working with anything other than their default components.
If she doesnt play any games, dont worry about the video card. Make sure it has a reasonably fast processor (anything over 2 GHz is fine), at least 512MB of RAM, and as big of a hard drive as you can afford. Spend the rest on the monitor or other modular upgrades like a DVD-R drive. If you dont need a fast video card, you should be able to get an awesome machine for less than $800, leaving you $400 for a nice 19" LCD.
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"Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws."
--Plato
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