ok m8 here is what i think ( not the most popular opinion here but i think it)
if u want cheap DO NOT go for custom OR small bits
depending how cheap you are looking at i suggest these things:
1) get a 2nd hand/ cheap motherboard and chip ( preferably with onboard EVERYTHING)
2) buy a decent sized HDD ( not excessive tho) and other bits like dvd drives
3) put it all in a case
4) get a PSU
5) install OS
i plan to run my mp3 player without a screen ( i intend to have a setup using winamp where i can put my songs into albums and playlists, so i just select one with a set of shortcut keys)
mine has set me back £20 in total ( that i can save in a week by not drinking)
that is except the inverter which cost me another £20 for a 500watt version brand new ( not a bad deal i think)
a good place to start would be your local university ( they tend to throw out allsorts of stuff that could be of use to you) and put up adverts in the cafe type places in the uni area offering to buy up old pc hardware
i have found that there wiill ALWAYS be people selling stuff around universities
the next place to try is schools, they are usually less good pickings but still worth a look
the pc bit scroungers gold mine is a skip outside a place of buisiness or education FULL of computers ( i have come accross two of these) and the pickings are usually quite good
remember free is cheaper than cheap!
also screen wise one of the better ways if you cant afford LCD is to alphanumeric LCD a bit like u get on calculators these are much cheaper and can give you the required info from software plugins usually such as song title track length etc,etc....
98 lite is really good and DAMN quick to run BUT it has drawbacks 98 doesnt have the compatability of lots of newer OS's things such as wireless WILL NOT WORK with 98 lite ( unless you have a 98 se disk, and then it is REALLY tricky to work)
but good luck



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