Well, for OS, you could probably survive with the Windows 7 beta ... like most of the people i know, but i myself am sticking to XP.
Hardware, on the other hand, i would recommmend AMD for the current budget your aiming for....if it was possible lol. Intel is currently leadign the line witht he highest end processors, but on the other hand, AMD is currently offerring the better value at a lower price. I don't know if youd be willing to change your personal preference to intel or not....
