The best deals (and the best pc's) are allways made (imho) buy just buying the hardware and casing and building one yourself (or let someone you know with some knowledge about computers do it if you're not too sure of yourself, but it's not that hard if you know how to use a screwdriver and can read a manual
)
If you're not a gamer then linux is highly reccomendable, take a distribution which is easy for beginners (I recommend SuSE, anyone with just the slightest knowledge of computers can install it, the documentation and support is excellent), seeing you only want to do basic stuff with it. There are some very good programs shipping with SuSE which get installed with the OS (SuSE professional ships with 3000+ software packages, at less cost then any microcrap os I believe) for your needs like:
KOffice (office suit which is free and rivals ms office (and in some aspects surpasses it))
Netscape/Mozilla/Konquerer
KOnCD
so my advice would be to just build/buy a pc (and clear it from win xp if you buy a complete system) and to just install SuSE (and if you do be sure to get a dvd drive with it cause it's a lot easier to install SuSE from 1 dvd then to do it from 5 cd's (or 7 if you install "everything"))
Hope this helped you with making your choice
[ December 04, 2001: Message edited by: BadKarma ]