Depends on the application you want to run. Office XP requires 128 Meg of Memory as a minimum. However if you wanted to use Word perfect Version 5.1, you could get by on an old pentium 133, with 16 MB of memory, under DOS or windows. Some windows applications have heavy GUI requirements. For instance if you run into Java 2, I think a Pentium 166 or higher is required. In most cases a good pentium II or Pentium III, with a 2 Meg Video card, will do just fine.
I tested my Athlon 1.2 Gig with an old 2 Meg Video card, and I had it running just fine. If you wanted to save money there are cheaper motherboards with the sound and the video built into the board. My motherboard has the sound built into the motherboard. My older IBM had the video built into the motherboard, and the M-Wave Modem made the sound. The drawback is if the modem gives up you have problems and need another I/O Card. Some places sell old equipment. You can probably get an old P133 for about $100.00. I asked IBM how much they would give me for mine as a trade-in, at their website, and they said about $14.00; it made me laugh.
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They had a P166 for $99.00 at computer surplus outlet.
I would recommend something like a PII350. I still have one at home, and it runs pretty good. I run Office 97 with Access on it and it runs great. They also sell used laptops, but I have never owned a laptop. Laptop computers usually cost more.
If you want something newer look for deals on a PentiumIII or Pentium 4 800 or a fairly new celeron or Duron. You can probably pick one up for $500 or less. Monitors and Printers I always buy at Best Buy. We had an offer in the mail the other day for a free printer or scanner if we signed up for internet service, but you had to sign up for a 12 month agreement. If you do not like my post feel free to point out your opinion or my errors.