I have a lot of respect for Fred Langa and his views. You might want to check out an article he wrote about Microtel computers at:
http://www.informationweek.com/story/IWK20030206S0014
He has high praise for their $199.95 system which consists of:
VIA C3 800-MHz CPU (a clone chip roughly equal in performance to an 800-MHz Intel Celeron)
128-MB SDRAM; 133-MHz front-side bus
10-GB Ultra-ATA 100 hard drive
52x CD-ROM drive
Integrated AGP 4x/3-D graphics
Integrated 3-D audio
Integrated 10/100 Ethernet connection
Mid-tower ATX case
1 serial, 1 parallel, 4 USB ports, 1 game port, 3 audio ports (line-in, line-out, mic-in)
Standard keyboard, wheel mouse
Amplified stereo speakers
LindowsOS operating system, with wide range of free open-source office suites applications and utilities available
These Microtel systems can be bought thru Wal-Mart.
I believe they have one with a 1.4Ghz processor for the same $200 price without the Lindows.
Of course monitors are extra but you can get some damn nice ones inexpensively at places like Best Buys.