My Life: Bad News My PC Is Dead :(

Really bad news this weekend. The computer that I built on 9/11 2001 is dead. I put the thing together as I watched the coverage of the terrorist attacks on 911. My wife Norma was in PA visiting with her Mom. I was home alone and found myself at home around noon because my company sent all our people home early that day. We were in a 70 story building downtown and it was generally thought tall buildings could be a target that day.
I came home and worked up in my office and put together the machine. Over the past few years I have added parts here and there.
Friday night I turned the machine on and it gave me a ton of hard drive errors. I figured it was a bad hard drive. But, after trying to reformat and re-install windows on EITHER of my hard drives all I got was a machine that kept shutting off. So it could very well be a processor problem as well. Or mother board. I am really not wanting to rip the machine apart and troubleshoot piece by piece. I may very well be better served by just getting a new one.
I am going to take my time and think things through and read a few reviews.
What I use the machine for is:
*transferring video from TiVo to the PC, then cutting the video and burning to dvd (mostly for my classes if there is something good on the history channel to show that relates to what I am teaching)
*holds all my music. I have about 50 gigs of music on a hard drive that I have downloaded and ripped from cd.
*holds all Aidan's pictures. We have a ton, as any reader of this blog would realize.
I used to play games on the PC, but that isn't something I am interested in doing anymore. I play on Xbox 360 and that's it now. It's too hard to keep up with the race in upgrading video cards. And too expensive.
So it looks like I could be in the market for a new computer. I haven't actually bought a PC in a long, long time. My laptop is an HP and I have enjoyed it quite a bit. But, it doesn't have dual hard drives that you need to work with cutting up video well. It's a wonderful wide screen laptop, but not perfect for my needs with creating video.
Anyone buy a machine recently that does the kinds of things I am looking to do? I would love some input. I know there are Pentium D machines now and AMD 64 machines. Not sure which kind I would want.
Any advice would be awesome and appreciated! :)
UPDATE:Well, I didn't wait long. Purchased a Dell. It's pretty much what I needed and for under $1,000 including taxes. Free 19" flat screen monitor. It's a decent machine that will do what I need it to do. I should get it next week. When I do I'll post pictures and a review of it.
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