AMD Athlon 64 X2 5400+: $139
http://www.newegg.com/Product/Product.aspx?Item=N82E16819103768
AMD Radeon HD 2600XT: $109
http://www.newegg.com/Product/Product.aspx?Item=N82E16814102700&Tpk=HD%2b2600
2GB DDR2-667: $76
http://www.newegg.com/Product/Product.aspx?Item=N82E16820145098
Ubuntu. Linux for human beings.
If you are interested in trying Ubuntu or Linux in general, PM me and I will answer your questions and help you install it if you wish.