I can't answer ALL your questions, but with some, I think I can help: (I assume that most of what you'll use your PC for is email, Internet, some word processing and some light digital picture processing -- to post them on xoutpost.com.
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- For what you're using it, 512 MB of memory and 160 GB for the HD should be enough. Admittedly, though, $60 bucks for another half gig is a very good deal. Like HP, you can never have too much memory.
- No, you do not need a floppy -- UNLESS you still have some old data on floppies that you must access. Any data that you want to save can be put in CDs or DVDs.
- You're correct that the CD/DVD combo you described is good. Again, perfect for what you'll be using it.
- $80 for bucks extra for the flat panel monitor is worth it. They take up SO much less space on your desk, and well, they just look a lot cooler, too.
- Printers are SO much cheaper now than they were a few years ago. You can get good deals on printers just about anywhere.
- Dish out the extra dough (whatever that may be) for the extended warranty/home repair service. Dells have a "spotty" reputation on quality. Some SWEAR by them; others hate them.
Juan