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Chris, Seems like you're pretty lucky with a $2k budget for HTPC and you only need to do word processing etc., with it at work. Check out htpcforums.com for some good info on what to look for. Don't forget to get a nice LCD monitor! I've got a 24" Dell widescreen and it worth its weight in...

Andrew, My friend bought a similar prefab machine (eMachine) and later regretted it. With these low dollar deals you typically find subgrade parts, particularly the motherboard. If your friend plans on playing any high end games I say pass. If it's for internet/word processing/etc. it's fine...

My input is definitely to build. I build my own machines and have always been happy. I know exactly what I'm getting. I've been looking at getting a new dual core machine for video editing myself and I was seriosuly considering the Pentium D in the Dell machines, but after reading some reviews...