First, go with at least a 20GB (which looks to be your minimal choice to begin with) hard drive since Microsoft operating systems are notoriously bloated.
At least 256MB of RAM, don't go higher than 400MB. You don't need anything higher than 400MB. If all you do is Freep, write letters, surf the web, and use graphics programs, you won't go over 200MB usage with an NT-based operating system (these days, that's Windows 2000 and Windows XP). At the moment, with six IE windows open (separate processes), as well as Word 2000 and Adobe Photoshop 5.02, along with several instant messaging programs and system monitors, I'm only at 188MB of memory usage. 256MB is about all you need for anything, but even when I get into stuff like video editing or gaming, I rarely go over 400MB of memory usage. 512MB is maximum, but just to waste electricity and generate more heat, I have 768MB in mine. Heh.
As for video, it really depends on what you intend on using it for. In your case, I recommend staying with whatever the default video it is they give you, since you really don't need an Nvidia GeForce3 video card. That's only if you play games like most people breathe oxygen.
Don't go with Windows ME. WinME is a bug-ridden pile of crash happy crap, and that's putting it lightly. Go with Windows XP, and if they give you a choice, go with Office XP Professional.
With the CD-ROM drives, it's really a case of what you intend to do with them. If all you're going to use it for is to play audio CDs or install software, then just go with a regular CD-ROM drive. If you want to make music CDs or backups of programs, then get a CD-RW drive. If the computer is going to double as a DVD player, then get a DVD-ROM drive. DVD-ROM drives can also read CDs, and the same goes for CD-RW drives.
If you can, get a SoundBlaster LIVE! sound card as opposed to the integrated audio. Most "integrated audio" solutions are incredibly cheap (in value and performance, not price) and tend to cause hardware conflicts.
Looking through the tech specs (back to the operating system), I recommend you go with Microsoft Windows 2000 Professional with the Microsoft Windows XP upgrade. Again, Windows ME is not worth your time and money.
On to warranties. If you can, go with at least a 2-year warranty. You're probably going to use the computer for longer than just a year, so get that warranty. It'll save you a lot of trouble down the road.
As for the minor things:
You don't need an Iomega ZIP drive. They have problems anyways, especially the Internal models (the notorious "Click of Death", for one).
The "Enhanced Performance" Dell USB keyboard is a sham. It doesn't offer you any "enhanced performance", it's just a marketing ploy to get you to spend extra on a "faster" peripheral that doesn't function any differently than a standard keyboard.
The mouse is a different issue than the keyboard. Mice have a tendancy to die a lot more often than keyboards, especially if they're standard analog mice (that is, if they use a rollerball as opposed to an illuminated scanner). Plus you're saved the hassle of having to clean out the mouse every month or so if you get an optical mouse. It's really a situation as to whether you can handle the possibility of the mouse going out (they're easily replaced) and the hassle of having to clean the mouse out once-in-a-while, or biting the bullet to get an optical mouse.
The regular speakers they give you should work, although if anything I'd just tell them to keep the speakers and buy your own. Or, if you want to get creative, you can buy a 3.5mm-to-RCA speaker jack and some RCA stereo audio cable and hook your PC's sound out to a home stereo system. It tends to sound a lot better than the standard two-speaker systems they give you, but that's only if you use the computer for a lot of audio stuff like listening to MP3s or audio CDs.
Unless you're looking to run a network in your house, and I'm assuming you aren't, avoid getting a network card installed. A modem is fine, but you don't need to get a network card unless you're planning on networking your house.
I think that pretty much covers it.
Everybody - thanks! It's obvious that some of you spent a ton of time helping. I'm now going to the little heart thingie on my AOL screen and saving this thread. Very much appreciated.
Good advice, but I would disagree about the ethernet network card. Most Dell models have one built-in or available and since most future high-speed cable modem or ADSL connects with 10mbs Ethernet the marginal cost is worthwhile. Get 512mb of RAM (multiples of 256mb easy).
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