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More computer stuff
Okay, here's a possibility. Tell me what you think. I'm not married to this or anything, and it's really more than I should spend...hell, it doesn't even include a monitor. And I'm still not determined to go to PCs for Everyone. So please be honest!
http://www.pcsforeveryone.com/System/Intel_2100_Series/4750
Has anyone tried NewEgg? Are they good?
http://www.pcsforeveryone.com/System/Intel_2100_Series/4750
Has anyone tried NewEgg? Are they good?

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What you might also do, since a budget is in the picture, is buy a "Barebones" and piece it together over time. Spreading your budget out and not making it be such a stress on purchasing issues.
Besides, there are lots of teenage techs out there that "Will Work 4 Pizza". Or cookies, or soda, or a homecooked meal.
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Also the DVD is 'normal' DVD, which means when Blue Ray is all that you can get (not that long in the future) you're not going to be using it for playing DVDs. Fine if you are only interested in older movies/shows that are on normal DVD, but those will start drying up over the next few years thanks to the standards change.
As you said, it maxes your budget and doesn't include a monitor, so that means to be functional you'll need to spend another $175 or more.
No word on New Egg, I haven't done any business with them.
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And their only blu-ray drive is $359! That's not going to happen. Maybe I can get an external one later when the prices come down.
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One of the problems with Blu-ray is that you are going to need both software and hardware support, and whether anyone will be doing such for XP in the long run is a good question (since XP goes off the market officially in June of this year if Microsoft has any say about it).
It's one of these problems I'm pondering regarding my hope to eventually replace my laptop with a Mac Pro laptop... they don't have blue ray support for the Mac as yet.
As for the graphics, I have always found that no matter how good the graphics card is, it's the ram that makes the difference when using games etc. I've got a decent graphics card in my machine (for a 3 year old notebook) with my Radeon 9700 but it doesn't have enough ram (only 256m).
The graphics card problem is one of my other issues I have ... games today require more graphics power than playing a movie. I've been told that although the Mac Pro can be used for making movies and doing movie editing, that the graphics cards are a bit behind the curve for games. Which is one of the reasons it takes a few years for games to go from other platforms to the Mac.
All these new games require huge amounts of Ram. I can't run Civ4 on my notebook - and it crawls and occasionally stalls on Cindy's desktop (which is newer and has a slightly better graphics card... she has to turn off animated turn mode options in order to run it at all). She also only has the 256 ram for the card.
So my presumption is, games need more ram, and that means 512.
Staying up on this ever changing world of tech isn't easy. I'm behind the curve on lots of things (and like you I'm self taught on what I know, mostly from talking to people who work with things and from doing a lot of hands on stuff).