The demands on this rig will be mediocre at best. Low-end gaming basically. The games that will be played will be a few years old: Age of Empires 3, Tes4 Oblivion, that sort of thing... at the 1440x900 resolution, high graphic settings, no AA, aiming for a decent framerate of perhaps 30-40fps. Nothing fancy.
I'm thinking a 5650 should handle it. All the other hardware should merely support the card and not bottleneck it.
Aside from this, not much use other than surfing the net and word processing.
I would prefer the micro-atx form factor. A smaller machine will be of greater appeal.
The challenge here is to keep the budget down, WAY down while keeping the quality decent.
-It must have some sort of hard drive and it *should* have at least 2Gb of ram.
- OS will be Win7
-DVD drive not necessary
-I have thought about used, however I can't find anything decent in micro-atx.
-No OC, stock cooling will do.