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Grap3S0da said:just built a pretty nice PC for my friend for about $550 shipped. I think newegg had a deal w/ the AMD Athlon 64 3500+ and Biostar Tforce 6100 motherboard that saved $20.
This is what I got for him.
AMD Athlon 64 3500+ Venice (retail w/ stock heatsink)
Biostar Tforce 6100 Motherboard
512MB Corsair Value PC3200
Seagate 80GB HDD
NEC 3550A
Mitsumi FA404 Media Card Reader
Antec SLK3800B w/ 400W Smartpower Power Supply
onboard video + sound (which is pretty good for your needs) and you can just get a vid card and more RAM later if you want to game on it.
You might want to get a cheaper processor since you said it wasn't for gaming and invest in a larger hard drive and more RAM, but I just wanted to let you know that you could build a pretty good PC for around $500.