1 more option. Dell Small Buisness sells some of their computers without an OS for some good prices. That may be a way to keep the "junk" off of the PC. Otherwise you could transfer over the XP pro license from his old machine and install only what you want from that disk. And you will have to download updates no matter what OS or computer you get.
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he only thing i don't like about store bought, is the fact they put in the pc what they want to put in it..for example i would have to get what ever cpu i might find in it, ram, vid card, or no vid card, etc...+
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I know exactly what you mean. That is why you must look in the stores to see if there is something that fits your needs. The eMachines computer that I talked about above would be a very good choice if they still have them at Best Buy.
If you decide to go for Dell and want to add some extra memory(on their entry level comps the only come with 128MB), do not buy it from them. They rediculously overprice add-ons like that. Just look for a deal at office max or best buy for the week. Also have him look at the dell website and see if he can configure a computer that is right for him. Check out the deals they have right now, nothing is spectacular but still good prices.
http://www.resellerratings.com/deals.pl?seller=1867