[dba-Tech] Desktop recommendation

I am looking for hardware suggestions and comments.

My primary development PC just lost its hard drive.  The boot sector is bad
so I cannot reformat it.  The PC is about 4 years old, so instead of
replacing the hard drive, I started lookin for "deals" on new computers.

Office Depot has an emachine for $370 that includes:
Celeron D Processor 330 (2.66GHz)
256MB DDR PC2700 memory
60 GB hard drive
DVD-ROM/CD-RW
8-in-1 memory card reader
17" flat screen monitor

For $100 the system can be upgraded to include
Celeron D340 Processor (2.93GHz)
512 MB memory
DVD-ROM and CD-RW

>From the Intel web site, I learned that the processor includes 256KB L2
cache and 533 MHz Front Side Bus.

Although this is not the fastest computer, it is quite a step up from the HP
Pavillion 733GHz Pentium that it will be replacing.

Does anyone have experience with emachine?  What is the difference between
Celeron and Pentium processors?  This seems like a terrific deal, am I
missing something?

The operating system is Windows XP Home.  I will replace it with Windows
2003 Terminal Server.  Any suggestions on how to configure the hard drive?
Multiple partitions?  If yes, what should each contain?

All suggestions/comments/ideas are greatly appreciated.

Joe O'Connell