CPU - Go for the middle-of-the-road (Intel or AMD) processor. Not the highest, but not the lowest CPU. You can always upgrade later, when the high end CPUs come down in price and you need more power.
Case - Mid-towers have enough bays for the average user. Make sure it has fans in the front and back of the case for better air flow.
Motherboard - Has more than 2 slots for memory upgrades down the road. It can be upgraded with faster CPUs when you want more POWER.
Video - The card should have at least 32M on it. This makes programs run a lot faster. Your Web surfing will also go a lot smoother.
Memory - 512M is good for Windows XP, 128M for Windows 98SE.
Floppy - 3½" drive
CD-ROM - The new DVD/CD-RW drives are great and have come down in price. This way you can burn CDs and watch DVD movies.
Modem - For dial-up internet surfing you want a 56K hardware modem. The soft modems have known problems holding a good phone connection.
Networking - A good 10/100 card is needed if you're going to use DSL or Road Runner. Some motherboards have the networking on them and work great!
OS - Windows XP Home is great for the home user and Professional is only needed if you're on a company network. So save yourself some money.
Monitor - This is the most important part of the PC system. Go for the biggest and best quality monitor you can afford. We're talking about your eyes, and the strain a poor monitor can put on them can cause headaches.
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