Basic desktop computers start around $500, but you usually won't get a monitor or the best components for that price. A couple hundred dollars more gets you a budget computer with much better performance, plus a monitor, speakers and a DVD burner. If you can spend closer to $1,300, you can get a full-featured desktop computer with far fewer compromises. At this price, a budget computer can include a larger hard drive, better graphics card and sound, faster processor and an LCD monitor. If you're interested in the latest processors and the best video scores, you should check out our separate report on more mainstream desktop computers, featuring systems starting at $1,300 or so. But in general, pretty much any computer will let you surf the web, type up letters and spreadsheets, send e-mail and chat online. Multimedia skills are usually what separate budget computers from the rest. If you want to manipulate and edit gigabytes worth of photos and video, or you want to play the most realistic action, racing and first-person-shooter games, you should also read our desktop computers report.

Even the cheapest computers are fine at basic word processing and Internet surfing, and you'll now find high-quality Intel and AMD dual-core processors (dual-core processors are much better for multitasking) in entry-level desktop computers. Reviews say the graphics engine and system RAM are far more important, recommending 512MB of RAM as the bare minimum you should consider. Even cheap computers now come with some nice extras, including dual-format, double-layer DVD burners, as well as memory-card readers. Most budget computers have integrated graphics, but a few better models have a dedicated video card. Not all computers with a dedicated video card can handle 3D games, but at least they can better handle MP3 and photo files, as well as run better Web pages than before.

Computer sales have stagnated in the last few years, so manufacturers have cut costs in several ways. One-year warranties are now standard, and a longer warranty will cost you extra. Dozens of pre-loaded software titles are no longer common. Instead, software is an added-cost item. When ordering a computer online, you'll get the operating system and perhaps Corel WordPerfect (a basic word processor), but you'll pay extra for Office XP productivity software or Microsoft Works Suite, which at least includes a full version of Microsoft Word. Some people prefer WordPerfect to Word, and even less expensive office suites are available, but having to pay extra for basic software can be a shock if it's been a while since you've bought a new computer.

Better deals from smaller manufacturers

Sometimes you'll get a better deal from smaller computer makers as opposed to Dell, Gateway (which also makes eMachines computers) or HP (which also makes Compaq computers). With systems from CyberPower and Velocity Micro, you get many more customization options along with possibly lower prices. You can choose the color of the case, add glowing lights, or add extra internal fans.

The CyberPower Gamer Ultra 7500SE (*est. $1,050) makes it into the top four in PC World's tests. It has a huge feature set for the money and comes with a 19-inch ViewSonic LCD monitor. As you might guess from the name, this desktop computer system is aimed at gamers on a budget, but the components which make this system a good pick for gamers also make it a good choice for other applications.

With this desktop computer system, CyberPower embraces the idea that you can equip a budget computer with good components, plus lots of room for future upgrades. One example of this is the inclusion of a low-end PCIe (PCI Express) graphics card. PCIe is the latest development in PC-card interfaces, replacing the older, slower PCI interface. While the included e-GeForce 7600 GS (with 256MB RAM) isn't the fastest PCIe video board, you can upgrade to a higher-end card later. CyberPower includes two additional free PCIe slots as well as three available standard PCI slots for memory upgrades. There are also two free, externally accessible drive bays and four extra internal bays for adding additional hard drives.

The CyberPower computer has a 250GB hard drive, 1GB RAM, a DVD+/-RW dual-layer DVD burner, and a multi-format media-card reader -- all fairly standard features now for mid-range computers. But the CyberPower Gamer again distinguishes itself with support for 7.1-channel surround sound and included Logitech X-530 5.1 speakers. The 3-year warranty coverage is also unusual. The catch is that in PC World’s last reliability survey (which polled 35,000 readers), CyberPower had the sorry distinction of being the most repair-prone out of 17 major brands. Editors say that nearly 46% of CyberPower owners reported at least one problem. So while the three-year warranty is unsurpassed among budget computers, there's a good chance you'll need it, according to PC World's survey.

The number one budget computer at PC World magazine is the Velocity Micro Vector GX Campus Edition, recently renamed as the Vector GX Holiday Edition (*est. $900 without monitor). The Velocity Micro computer is also a top pick at PC Magazine (where it receives an Editor's Choice rating), and it gets a rare rating of "excellent" from CNet.com. Like the CyberPower Gamer Ultra, the Velocity Micro computer includes an excellent component mix, with lots of room for later expandability down the road.

The Velocity Micro Vector GX Holiday Edition is a special seasonal version of Velocity Micro's regular Vector GX computer, but by going with the Holiday version, you can save about $125 over a similarly configured regular Vector GX. The Holiday Edition comes with the second generation of Intel's dual-core processor, the Core 2 Duo. In tests, the Core 2 Duo blows earlier chips out of the water with better heat management and less power consumption. Since it's a dual-core chip, it's better at managing multiple tasks than a single-core processor. The Velocity Micro desktop uses the entry-level version of the Core 2 Duo, the 1.86GHz E6300. You get 1GB RAM, a 250GB hard drive, a dual-layer DVD burner, a second DVD-ROM drive and integrated 5.1 sound (though only 2.1 speakers and a subwoofer are included at this price). The Velocity Micro uses the same graphics board as the CyberPower Ultra Gamer -- the GeForce 7600 GS with 256MB of video RAM. As with the CyberPower computer, frame rates for games aren't too bad for the price, and they’re certainly playable at lower resolutions. You can add a 17-inch LCD monitor for another $150 (CyberPower gives you a 19-inch monitor).

There are plenty of ports and expansion slots, including six USB ports, two FireWire ports, support for 5.1 audio and two vacant drive bays for additional hard drives, plus space for two externally-accessed optical drives. There are three free PCIe x1 slots and an extra PCIe x16 slot for another graphics card (though there's no support for SLI graphics, which links two matched graphics cards together). So compared to CyberPower, you get a higher-end processor, but a smaller 17-inch LCD for the same money. Although Velocity Micro wasn't included in reliability surveys at PC World or PC Magazine, one bonus is that its entire customer service department is located in Richmond, Virginia. Furthermore, support technicians all started on the factory floor before moving to customer service. So if you do end up with a problem, at least you know you'll be getting an English-speaking direct employee rather than outsourced customer service.

If you don't have any plans to play 3D games on your computer, and you're a huge NASCAR fan, PC World likes the Cisnet NASCAR PC (*est. $400 without monitor) well enough to place it on its top-ten list, though testers say it's performance is average in every respect. Although every component is decorated with a NASCAR theme, forget about actually playing NASCAR games on this computer -- the integrated graphics just don’t have enough oomph. However, it does come with a decent AMD Athlon 64 processor, 160GB hard drive and DVD burner, but only 512MB of RAM.

Mainstream brands can still be competitive

Although companies like CyberPower and Velocity Micro are putting together some good deals, many people just feel more comfortable buying from a known entity, even though overall value may trail the smaller-brand competition.

Dell has several budget desktops, and like most Dell computers, you can easily adjust the configuration on the Dell website. Dell's budget computers have not been as popular in reviews as they once were, and Dell's customer service scores in reader surveys are nothing special. Tellingly, not a single Dell computer lands on PC World's list of value desktops. But frankly, it looks like the Dell E310 may have slipped through the cracks -- it actually achieves a higher score than some other desktops, yet editors didn't place it on their list of top desktops.

Although Dell has a super-budget line of desktops that start as low as $300 (without monitor, keyboard, mouse or speakers), we found more reviews for the Dell Dimension E310 and E510 desktop computers, both of which come standard with Windows Media Center Edition. The Dimension E310 is an Editor's Choice at PC Magazine, where it's specifically noted for its DataSafe system, which helps users get more diligent about safekeeping their data. At CNet and PC World, performance scores for the Dell E310 are merely average.

The Dell Dimension E310 (*est. $815) includes an option for DataSafe, Dell's backup system. With more and more people keeping big photo, music and video collections on their computers, encouraging people to backup their data is increasingly a concern. Dell's DataSafe option includes two hard drives of equal size -- your data is saved to both hard drives at the same time, so you've got identical data on each (this is called a RAID 1 configuration). If one drive fails, the other takes over with no data loss. In addition, you get a copy of Norton Ghost imaging software. This software helps you schedule backups of important files to removable media, such as DVD discs or an external hard drive. Reviews say this is great way to protect your data.

Unfortunately, reviews aren't as impressed by the Dell's other features. You get an older Pentium 4 processor and just 512MB RAM (you can upgrade to 1GB for an extra $45). A 15-inch LCD is standard (a 17-inch LCD costs $35 more), as is a dual-layer DVD burner. But graphics are integrated (no good for games or video editing), and there are no speakers or productivity software included. There's no FireWire port, and even a media-card reader costs extra. There's only one free PCI slot for upgrades, and only one free spot for an extra optical drive.

The Dell Dimension E510 (*est. $925) is a step up. It includes a Pentium D processor (two generations removed from the latest Intel Core 2 Duo), and in lieu of integrated graphics, it has a PCI Express x16 ATI Radeon X300 SE graphics card (which you can choose to upgrade later). According to PC World, gaming is merely average, not good enough for serious gaming fans, but good enough for casual users (as long as you're playing at lower resolutions). DataSafe is an option in a range of hard-drive sizes, and a 17-inch LCD comes with the package. Speakers, software and media readers are still add-on options. Both Dell computers come with Windows XP Media Center Edition. A TV tuner is an $80 option on both, but if you have a cable hookup, you can pause and record analog TV to your hard drive.

Hewlett-Packard (HP) makes many desktop computers in the $600 to $1,300 range, and we found a lot of positive reviews for some of these inexpensive desktops, many of which have a multimedia focus. Although reviews rarely recommended the same model, HP desktop computers receive good reviews in general from critics.

Where Dell has its DataSafe feature, HP has a unique feature of its own. Some of its desktop computers are compatible with HP's Personal Media Drive, an external hot-swappable hard drive. You can use the Personal Media Drive to back up data, then remove the drive for safekeeping or simply use it as extra storage. Several of HP's desktops have a slot for a Personal Media Drive -- you slide it in just as you might do with a VHS tape. The Media Drive can also connect with a USB cable. The HP Pavilion d4600y (*est. $900) can accept a Media Drive (not included). This system comes with a Core 2 Duo processor, 160GB hard drive and 1GB of RAM (all upgradeable). There's a DVD burner, a 9-in-1 memory card reader and integrated audio. You can also opt for dual matching hard drives in a RAID 0 configuration which will make matching copies of your data on identical hard drives. No monitor, productivity software or speakers are included, but you can add them. You can also add a TV tuner.

HP also gets some good reviews for its Slimline Pavilion desktop computers. HP's Slimline models have a smaller form factor that makes them an easier fit on a dorm-room desk or anywhere else. They don't have a slot for an HP Personal Media Drive, however. The HP Pavilion s7500y (*est. $650) comes with a Pentium M processor instead of a more recent dual-core processor. It has 512MB RAM (1GB RAM costs $60 more), a 160GB hard drive, DVD burner, 9-in-1 memory card, integrated graphics and audio. A modem, speakers and monitor cost extra. One drawback to the slim form factor is that there's little room for upgrades. There's only one free PCI slot in this model, for example.

If you like the idea of watching television on your computer, Windows XP Media Center plus a TV tuner lets you link your cable-TV input to your computer. Media Center can work like TiVo, allowing you to record, pause and replay live TV. You can also work on one window while watching TV in another. TV tuners add about $100 to the cost of a desktop computer, and if you want to record TV to your hard drive, you'll need a lot of memory.

HP also gets good reviews for some of its Media Center TV PCs. The HP Media Center m7500y (*est. $1,200 without monitor) has a Pentium D processor, 1GB RAM, 250GB hard drive, dual-layer DVD burner (letting you burn TV shows to DVD), 9-in-1 memory card reader and an integrated TV tuner with DVI out (so you can hook up your computer to an HDTV or other flat-panel display). It comes with a mid-range GeForce 7500LE graphics card with 256MB of video RAM, but no monitor or speakers. It does include a slot for HP's Personal Media Drive (not included). A variation of this computer is one of the top budget PCs at PC Magazine.

Gateway computers haven't done as well in reviews as they once did, and though we did not see downright bad reviews for Gateway desktop computers, they surely don't stand apart from the pack in reviews. The Gateway stores offered an advantage over Dell in years past, because you could go to a store to try out a Gateway computer before buying it. But since Gateway closed its computer stores, now you have to take a chance on liking the overall feel of the computer, just as you do with a Dell.

eMachines desktop computers are often the least expensive option

Some eMachines desktop computers are recommended in reviews. eMachines is owned by Gateway, and this label exclusively makes inexpensive desktops (after a brief attempt at making laptops). In service and reliability surveys at PC World and PC Magazine, eMachines gets unexceptional scores, but editors at PC Magazine see some improvement over last year. And owners of new eMachines computers report only a 4% rate of repair for computers less than a year old (the average among Windows PCs was 11%). So there are signs that eMachines may be improving.

You can't custom configure eMachines computers -- so you can't add RAM or a bigger hard drive when you buy the computer. On one hand, this simplifies your buying decision, but on the other hand, you don't get any flexibility. While other manufacturers can quickly add a new processor option, eMachines isn't as quick to add upgrades to each system. CNet's editors say eMachines configurations can be dated compared to the competition (for example, all of eMachines desktops use single-core processors). Even so, eMachines computers are inexpensive, and if you just want a simple, inexpensive computer for email, web surfing and basic office tasks, these are a no-frills option.

We found conflicting reviews for the eMachines T6536 (*est. $600 without monitor). While PC World places it in its number-two spot for value desktops, even though editors say performance is only average and find that the system has no "snazzy" features. CNet gives it a rating of only 5.6 (out of 10), saying its configuration is dated, with limited expandability. The eMachines desktop computer has a single-core Athlon 64 3800+ processor, with 1GB RAM and a 250GB hard drive. It does have a DVD burner and 5-in-1 memory card reader. It uses integrated graphics, resulting in "unplayable" frame rates, so it's no good for games. However, there is a free PCIe x16 slot for adding a graphics card at a later time. The eMachines T6536 ships with Microsoft XP Media Center Edition, but you don’t get a TV tuner or remote control. This computer comes with a keyboard and a mouse, but no monitor or speakers. This is the only desktop from eMachines that comes with 1GB of RAM.

The eMachines T6534 (*est. $500 without monitor) costs $100 less, but has just 512MB RAM (reviews say you really want to have 1GB RAM to future-proof your computer) and a 200GB hard drive.

All of the desktops we've discussed so far use Windows or Macintosh operating systems. These two operating systems are owned and licensed by Microsoft and Apple, respectively. By contrast, the Linux operating system is open-source. Rather than being owned by any particular company, the basic code for Linux is available for any software developer to use for free. (Developers can then use the basic Linux code to develop branded operating systems and software. The interface looks and works a lot like Windows, although Windows software will not run on a Linux system. The low-cost Linux operating system allows PC builders to create systems without the licensing fees associated with Windows, and allows for astonishingly low-cost computers sold through discount stores.

One example of a Linux system is the Microtel PC SYSWM4008  , sold though Wal-Mart. It runs on the Xandros Linux operating system. It comes with a keyboard and mouse, but no monitor or speakers. The Microtel uses a 2.8GHz Celeron processor and has 512MB RAM with an 80GB hard drive and a DVD-ROM/CD-RW drive. The Microtel comes with some basic word-processing software, but you can't run Windows software without additional software.

As a counterpoint, the eMachines T3504 costs the same, but uses Windows XP Home Edition, on which you'll be able to run all your normal Windows applications. It uses a 3.2GHz Celeron processor, with 512MB RAM and a 120GB hard drive -- larger than the Microtel computer. This eMachines desktop also uses integrated graphics, but while the Microtel has only an outdated AGP slot for graphics upgrades, the eMachines T3504 includes a more recent PCIe x16 slot. The eMachines also has two additional USB ports and includes speakers, a keyboard and a mouse (but no monitor).

Budget Macintosh desktop computers

Now that Apple has ended its long-term allegiance to PowerPC processors and switched to Intel, new possibilities have widened the appeal to those who aren't "Mac people." Two software applications -- Apple's free Boot Camp software and the Parallels Desktop for Mac (*est. $80) -- allow Mac owners to run both Mac OS X and Windows on the same computer. That means that Windows applications can run natively on a Mac rather than by using emulation software. There are entire Web sites dedicated to running the two operating systems side-by-side, so if you're interested in trying it, plenty of help is available. For people who've been torn between Macintosh and its seamless hardware/software integration, and the universality of Windows, the new Intel-based Mac mini and iMac computers can help the two worlds meet.

Although the Mac mini (base price *est. $600 to $800) has made the biggest headlines, Apple has also been tweaking its other desktop computer lines to incorporate Intel processors, including the 17-inch iMac all-in-one computer (*est. $1,000 to $1,200). There's also a 20-inch version of the iMac  and a 24-inch iMac  , but their higher price tags disqualify them as budget desktops.

Reviews say the iMac really hasn't changed much, aside from the substitution of an Intel processor for its PowerPC chip. Of all midrange Macintosh desktops, the iMac series gets the best reviews. The sleek-looking iMac hides its internal components behind a two-inch-thick LCD monitor. The $1.000 17-inch version of the iMac comes with a 1.83GHz Intel Core 2 Duo processor (the very latest Intel processor), 512MB RAM, a 160GB hard drive and a Combo Drive, which can burn CDs and play DVDs. Keep in mind that most reviews recommend bumping the RAM up to 1GB, which costs an extra $100. All iMac computers have an integrated iSight webcam in the monitor. The Wall Street Journal calls the iMac the "gold standard" when it comes to desktop computers.

Like the Mac mini computers, the $1,000 iMac uses integrated graphics, but the $1,200 step-up 17-inch iMac has a dedicated video card, the ATI Radeon x1600 with 128MB of video RAM. While certainly not the best video card, it's better than totally integrated graphics. Movies, photo editing and simple games should run smoother, though the iMac still isn't a good choice for action games. Its new Front Row software and Apple Remote let you control music and movie playback from across the room. Plus the more expensive 17-inch iMac has 1GB of RAM, a faster 2.0GHz Intel Core 2 Duo processor and a SuperDrive, which burns DVDs and CDs. The $1,200 iMac is probably worth the extra money over the base model, since it has a faster processor, twice the RAM and a DVD burner.

If you want a Mac, and you don't already own a monitor, speakers, keyboard and mouse, either iMac is a better deal than the Mac mini, which doesn't include any of these.

When it comes to viruses and spyware, Apple computers have a clear advantage. Macintosh computers don't have the same security issues as Windows computers, and as yet, there have only been two minor viruses aimed at Mac computers. Performance-wise, reviews say the iMac is great for the basics, as well as for music and movies.

Important Features: Budget desktop computers

When you buy a budget desktop computer, you don't have to settle for budget specs. Here's what experts say to aim for:

• Look for at least an Athlon 64 or Intel Core Solo processor, but an Intel Core Duo or Core 2 Duo is even better. With the glut of sub-$1,300 systems on the market, you shouldn't have a problem finding a computer with a quality processor. In systems costing $600 or less, you'll still find some Celeron chips, but reviewers say Pentium and Athlon processors are better choices.

• The more memory, the better. Many systems have just 512MB of RAM (random access memory), and experts say that's simply not enough to run today's Mac OS X and Windows XP operating systems smoothly. Shoot for 512MB as the minimum. If you hope to upgrade to Windows Vista, go for 1GB.

• A basic PC should have at least an 80GB hard drive. Even for budget computers, 80GB and 160GB hard drives are getting to be more standard. Larger hard drives are inexpensive upgrades when you are ordering a new computer, so it's a good idea to get more than you think you'll need.

• Look for a DVD burner, which can record to DVDs and CDs, as well as play CDs and DVD movies. Nearly all budget computers ship with a CD-RW drive that can burn CDs, instead of a CD-ROM drive that can only read them. But many computers are now shipping with DVD burners. You can fit more data on DVDs, useful for system backups as well as for storing and playing photo and video files.

• Check to see whether a monitor is included. Many low-cost computers don't include a monitor, and you obviously need one, which can add $100 or more to the purchase price. Most budget PCs are now shipping with 17-inch LCD monitors. Most manufacturers let you upgrade the monitor when you configure a computer on their Web site, and some offer periodic bonus upgrades.

• Don't expect the best multimedia performance. Most desktop PCs come with a set of speakers, although you can't expect premium sound for a budget price. You won't find top-of-the-line graphics or sound cards, either, although you can usually pay for an upgrade if these components are important to you. Keep in mind that the cheapest desktop computers use low-end motherboards and power supplies that make extensive upgrades impossible.

• Look for at least 4 USB ports, a FireWire port and memory card readers. You'll need these to hook up cameras, printers, keyboards and mice. Memory card readers are handy as well.

• Windows Vista ready. Windows Vista is the successor to Windows XP. There's no reason you have to upgrade to Vista, but this new operating system promises many enhancements to security and usability. If you think you might want to upgrade, you'll need a computer with some minimum specifications. Some manufacturers are selling computers as "Windows Vista Ready" which ensures they have the minimum specifications necessary to run the Basic version of Vista. However, Vista's cooler features are reserved for Vista Home Premium, which requires more system resources. See The Buzz below for more on Windows Vista.