With Home Basic you will miss this
Media Center (with HDTV/cablecard support)
Windows Movie Maker (with HD support)
Windows DVD Maker
Scheduled backup
more than 1 physical CPU in PC
"SideShow'
Aero "Glass"
So Premium offers some good stuff for home media
Actually I would go for 3GB RAM if possible to make it more useful for the above features.
And what I would really do is get a refurbished DELL
like this, but maybe a less expensive one
You can filter by many features you are looking for to get the biggest bang for the buck, availablility changes frequently, you can sort by price
http://outlet.us.dell.com/ARBOnlineSales/topics/global.aspx/arb/online/en/InventorySearch?c=us&cs=22&l=en&s=dfh Inspiron 530
(System Identifier: 0GC668HP)
* Inspiron Desktop 530 Mini-tower: Intel Pentium dual-core processor E2180 (1MB L2,2.0GHz,800 FSB)
* Genuine Windows Vista Home Premium
System Price : $369.00
Operating System
Genuine Windows Vista Home Premium
Memory4 GB DDR2 SDRAM 667MHz (4 DIMMs)
Hard Disk Drive 320 GB SATA Hard Drive (7200 RPM)
Modem V.92/56K PCI DataFax Modem
Certified Refurbished
Base Inspiron Desktop 530 Mini-tower: Intel Pentium dual-core processor E2180 (1MB L2,2.0GHz,800 FSB)Media Bay
16X DVD +/- RW w/dbl layer write capabilitySoftware Upgrade
Microsoft Works 9.0
64BIT Operating System CD
Hardware Upgrade
USB Keyboard
No Floppy Drive
Dell Optical USB 2-button Mouse