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Best bang for my budget

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Hi there. I'm trying to come up with a good setup for basic gaming (not asking for crysis here, I'd just like to be able to play something decent without lagging on the lowest settings) and day to day internet and productivity tasks. I'd like to keep it under 500 dollars but I don't know how to really appropriate that so that I'm not wasting it on features I don't need or won't use. Any recommendations?

* ~$500
* Just hardware - OS and software is covered
* Just things in the case - I can easily acquire a mouse and keyboard
* Should run mild games, nothing insane but will require a video card and decent RAM
* Must run Windows 7 as it's the only OS I have access to
* Already have CD/DVD drive
* Would like some upgradability, just enough that I can add power (College kid here)

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Hello steveg89;
At the moment a budget build with AMD is going to get you a great bang for your buck.

Athlon II X3 435 Rana 2.9GHz CPU $71
BIOSTAR AM3 785G Micro ATX Motherboard $65
A-DATA 4GB DDR3 1333 RAM $99
Seagate 7200.12 500GB $55
XFX HD-575X-ZNFC Radeon HD 5750 $130
Your DVD drive.
CORSAIR CMPSU-400CX 400W PSU $50 and $20 rebate
CM Elite 330 Case $40

$510 before rebate
With the X3 435 CPU & Biostar 785G MB combo you'll have a chance to try unlocking the 4th core of the X3 435. With a bit of luck have yourself an X4 955 CPU.
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