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Hi Ken,
Don't get distracted by everybody else's wish lists, a budget's a budget and you have to stick to yours. The $399 system with XP Home and a modem will suffice for your current needs.
Is your existing modem an external one? If so it will work fine on the new box as long as the latter has a serial port. Otherwise I wouldn't quibble about $50. Computers are complex twitchy things that like to play up, so it's best to buy local.
Your old monitor may be a problem but shouldn't be as long as it has the same connector as currently used. You could take it in to the shop and make certain, if they want the sale they'll humour you.
Regards,
Chris
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