Get one of them Intel 64 EMT CPUs on a i925 chipset board. Yes, when it comes to video, Intel does lead this one area by a little.
Since you have not mentioned gaming as one of the needs, a decent video solution would start with the Nvidia 6200 series or the ATI X300, both of which begin at about $60.
The minimum RAM you'll need is 512 MB, with 1 GB being the recommended amount (2x512)
Buy the largest, fastest HDD you can afford - nothing less than 200 GB - and you may as well buy SATA II. Seagate NCQ is my recommendation ($134 on Newegg)
Get a NEC 3520A DVD writer as well - $56 or so.