I don't know if this is even on the radar, but this sounds like a job for Linux.
No really, if she wants per-seat support, you can get a contract with someone like RedHat, and if she wants to go cheap and can figure things out, then you could just burn a disk or two and install away, and when the BSA comes knocking, you can tell them to get bent.
There are also some excellent thin-client servers for Linux if she's looking to
not outlay for new tech at every terminal. Check those out here:
http://k12ltsp.org/contents.html
Anyhow, with Mozilla/OpenOffice 1.1, you get all the web browsing and paper-writing you could like, without having to hassle with that licensing crap.
Sam