Yep. I got my 2.0 GHz eMachines pretty darn cheap ($750). 512 MB RAM, 160 GB hard drive, and it can play CDs, DVDs, and all of that stuff (watched "Godzilla, Mothra, and King Ghidorah: Giant Monsters All-Out Attack" last night on it - the BEST Godzilla flick I have seen).
You overpaid. I just got the same system for $399 at CompUSA.