Newegg has the Rosewill R363-M-BK Micro Black Ultra High Gloss Finished ATX Computer Case with 400W ATX 2.2 12V Power Supply for $50 - $10 off with coupon code EMCNAJB23 [Exp 9/24] = $40 with free shipping. Supports two 5.25-inch external drive bays, one 3.5-inch external drive bay, two 3.5-inch internal drive bays with an 90 mm case fan mount.
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Start with this case/PSU then these deals/part from Newegg and you get a nice $230 build for a home use web/email box for Grandma.
CPU Athlon II X3 450 Rana 3.2GHz - $60
http://bensbargains.net/deal/amd-athlon-ii-x3-450-rana-3-2ghz-processor-60-at-newegg-272785/
Biostar A880GZ AM3+ AMD 880G $40
http://bensbargains.net/deal/biostar-a880gz-micro-atx-amd-motherboard-40-at-newegg-273242/
Kingston HyperX Blu 4GB (2x 2GB) DDR3 1600 (PC3 12800) - $25
http://www.newegg.com/Product/Product.aspx?Item=N82E16820104203
SAMSUNG Spinpoint F4 HD322GJ/U 320GB 7200 RPM 16MB Cache SATA - $50
http://www.newegg.com/Product/Product.aspx?Item=N82E16822152244
Samsung SH-224BB 24X SATA DVD - $15
http://bensbargains.net/deal/samsung-sh-224bb-24x-sata-dvd-burner-15-at-newegg-273402/
Well, unless you go with Linux or have an OS you can transfer, you'll need to shell out about $110 more, depending...
#2 - That goes without saying, thought Win7 Home can be had for like $80 at this point.
Find another $310 Box that's not a refurb on Xp! Nothing worse than trying to work through a problem while you’re now in Win7; how often do you need to take screenshots to send a step-by-step to fix something.
Sure you might find a box for $325 afforded with a G630 and GMA Craphics that's fine, while you could stick her with something as old as she is with GeForce 6150SE. I suppose there might be some nice A6 deals coming along, if you could find some Acer/Hp for $350 or little more if you wait.
While there's always that "My Grandson built it for me" to factor... Although, if not someone who can construct a good computer, probably better to not... she'll curse you to the grave, and cut you from the Will.
Great call on that Athlon tri-core. I ordered one myself. Reviews on it are excellent.