You might see some pre-built PC for just $300, with what SEEMS like good specifications.
Uh, I was recommending this for people like my grandmothers, who's idea of high-end games are mahjong and solitare.
Super-Swish Mc Mega PC = $399
One set of grandparents are on disability and the other's on social security, $400 is still expensive for them.
300Gb Hard drive!
They'll still never use all of it
512Mb Graphics! THE MOST MISLEADING OF ALL! - Unless they state what model it is, it is probably one of the asthmatic older cards, re-released by ATI or NVidia with extra video RAM. SLOW AS ALL HELL!
More likely a business edition on-board video card. Still, as long as it can play mahjong and solitare, they'll be happy. Putting extra ram on a video card that's already been produced isn't economically worth it for a business. Creating economy video cards is.
Newest AMD64 CPU! - Yesterdays technology. AGING FAST.
Still equals more than 10x the CPU they'll need/use. My parents are still tooling around with a CPU from 2, my grandparent's are on a 400mhz machine.
1Gb of RAM! - So? That's nothing special now, and is probably going to be be 2 sticks of crappy 512Mb budget RAM. When you get Windows Vista, that will not be much to shout about at all.
It'll run XP, Office, Internet, and the aforementioned games just fine. My relatives are on: '98, ME, and 2000 respectivly. They're not going to run out and go get Vista just for the heck with it. We're lucky if they run windows update. They're on dial-up internet.
19" Monitor! - Again, so what? It is probably some generic crappy flat screen with not much to write home about when it comes to response times and resolution.
The better to see you with. They'll run it at 800x600, just so they can see the pictures. Blurry is just fine. Response time? We're talking about the generation that grew up with radio and B&W TV's, VCR quality video. They won't be doing anything fast enough to be bothered by slow response times. Heck, they run their CRTs at 60hz.
Know your customer and their requirements.
*Edit: Fixed tags and removed unnecessarily large font.