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The most popular processors are pentium, celeron, and AMD.
This is a picture of a pentium 4 processor. This is called a socket procesor and is compatible with socket motherboards (but some motherboards aren't powerful enough).
This
is usually a couple inches wide/tall and will have a lot of pins on the bottom
(which you can't see in this picture) and it pushes into the
motherboard. Click any pictures to see the bigger version.

These next two pictures are (pentium II)
slot processors. You can see the gold "teeth" on the picture
on the right. It will actually plug into a slot in the middle of the
computer and stand up just like an ethernet card or something of the
sort. (the left picture is the card covered)
In all cases, (once installed) you will see a fan attached. On the socket processor, the fan attaches to the top and essentially covers it up, so you won't see it on a motherboard unless you take off the fan/cooling unit.
On the slot processors, you'll usually see 2 fans side by side affixed to the side.
The difference between slot and socket
is pretty irrelevant unless you're building your own computer and need a slot
processor for a slot motherboard, thus if you get a slot processor for a
socket motherboard, you're pretty much fucked.
When you read about a processor that
has 166Mhz, 256Mhz, or even 1 gigaherz, that's the speed... that's how fast
your computer will process information, thus the name processor chip. 1
gig really seems to be sort of the standard with new PCs. some more,
some less. I've heard of some processors going all the way up to like
100 gigaherz which is really absurd for a home user.
If you had 3 computers side by side by side and all had pentium, celeron, or amd 1 gig processors, I would wager you wouldn't notice the difference.
Notice
the gold square. That is the cooler on top of the SOCKET processor
(refer to the pentium 4 picture above).
Notice the 3 vertical black lines to the right... those are the memory slots.
The 4 horizontal slots are PCI slots (see later in this section).
This particular motherboard appears to be compatible with both slot AND socket processors. See the brown vertical slot? That looks like a slot for a pentium II (or another slot processor as pictured above).

This is a slightly different motherboard. Notice there's 6 PCI slots, and the white square on the bottom/left is where a socket processor chip will go.
There's many brands of motherboards.
The white PCI slots are what you'll plug various cards into, such as modems, network cards, even video and sound cards... the more the merrier, but the more slots, usually means the more money. I recommend at least 4 PCI slots.
Also, the most popular type of memory is SIMM. You may hear SIMM and DIMM. DIMM (unless my alzheimers is kicking in) is the older version of the 2. You really won't have to concern yourself with this unless you upgrade.
Some motherboards may only allow you to go up to a certain maximum of memory, so even if you have 3 slots, you may not be able to put 256 sticks in each slot, but newer computers should accomodate. For the average home user, 256 is more than enough... and it's pretty much the standard, although I have one computer running on 96 ram and it's just fine.
Video Cards
There's many brands, many types and all I can say is, the higher the MB (megabyes), the better. Some Video Cards are 3D compatible and I've never seen a use for it other than playing video games.
If Bruce is playing games (bought or even online), a 64 meg specialty video card may suit him best, but 32 meg is more than enough. I have either 8 or 32 meg cards in my systems and don't really notice a difference in either.
The main thing in a video card is the ability to allow you to change the size (resolution) of your computer screen, and see more colors. Old video cards such as 2 or 4 meg (even older 8 meg ones) won't allow you to view images with the utmost of clarity, so if Bruce is surfing porn, the images may look sorta choppy, the pixels may not be clear, etc.
The differences in video cards are what's compatible with what operating system, and the slot it plugs into. So if you ever upgrade, make sure you look for one that will fit into your motherboard (PCI or AGP i believe it is) will get the job done. And if you're running XP, don't get one that's only compatible up to windows 98se.
I don't know much about them except newer ones are better. Watch for compatibility with operating systems as mentioned above.
There's different brands. Some take for granted Sony is the best, but usually they're just more expensive and not the best. A brand you've never heard of like Liteon I've heard is better and more popular right now.
There's also different kinds of players. If you get a slot ROM, it will work like a car stereo, if you get a tray ROM, it will have a tray that opens and closes. The slot one's look spiffy and are pretty cool... and surprisingly not all that more expensive at all.
Make sure if you get a burner that they give you software with it. Nero is popular. You can also get ripping software online.
As with any cards, make sure software comes with it, you'll need it to install drivers.
I did a little searching online and 80 gig really seems to be the norm, 40 is the lower end which appears to be phased out... 20 appears to be history. I saw hard drives that were 160 and 250 gig's online. Amazing. Apparently the bigger the number, the more appealing to consumers, but highly unnecessary. The thing I noticed though is that an 80 gig hard drive can be had brand new for only 5-15 bucks more, so why not?
The one that costs around 350 didn't sound like it had a CD burner, but for about 20 bucks more, he should be able to have one put in, or you guys do it yourselves. He can save by getting a 20 or 40 gig hard drive instead of 80. If his video card is 64 RAM, he could chop that in half and save.
The dell actually sounds like the better deal if he can get a burner, 256 RAM, celeron with about 1 Gig speed, ethernet card, sound card, and the like. His friend's deal sounds like a saving as well.
If I were building a computer for someone, this is roughly what I'd charge...
Approximately 300 for a
motherboard/processor (but that will vary greatly depending on speed and
brand).
About 30-50 for a nice video card
About 65 for an 80 gig hard drive
40 for a CD Burner (80 for a DVD Burner)
10 for a Network (Ethernet) card
About 50 bucks for 256 RAM
Then you'd have to figure in the cost of the computer case, which could be
anywhere from maybe 20 or 30 all the way to 100+ for cool fancy ones.
All said, I don't think I could build a computer for less than about 500 and that would include a burner and all of the above, so Bruce's connections must be getting some parts for free or at much better discounts than can be offered at the cheap spot where I buy parts by my house.
Now when I finally create my own business and get registered, I should have access to wholesalers, so I may go into the puter building business myself and probably be able to rival or beat the prices Bruce is looking to pay. Bottom line is, he's getting a deal for what he's getting whether he pays 350 or 450. Just make sure he gets a burner, ethernet, and all that jazz we talked about earlier.