Does the OS need to come out of the $200? That is a budget killer right there.
Linux and GIMP (instead of Photoshop) could save some money.
The OS is not an issue actually. I have a copy of windows XP Pro w/SP3 and yes I am in fact planning on dualbooting a Linux distro like maybe Ubuntu or "DSL" Linux on it.... I will get windows 8 later on down the line. And I don't really need DX11 or even CUDA right now.