I actually posted a few posts before this I don't need to buy windows 7 because my university gives out free copies
Let's me post on my dads situation for clarifiaction.
He doesn't game at all, except for Galaxian. This is the first time he's upgrading a computer in 6 years, and he wont be upgrading for probably another 6, so don't worry about upgrade paths.
I know the mentality here, which is the same as mine, bump up the price a tad and get vastly better specs, which is what i did for my video card, got a 7850, but since my dad wont be doing anything stressful on his computer, even if of saves $30 and the computer u get is vastly crappier, do it. They philosophy is, get the price as low as possible at all costs. But again there's a limit to that, which is anything C2D first gen or lower don't, because its not worth it.