Don't know much about computer hardware, can you help me?

Your question is alreadfy nicely answered by A and Taylor. I want to add, go for a good quality monitlor. Atleast 22 inch in size and LED. another point is go for a good sound card and speakers. I will suggest creative labs Audigy sound card and Altec Lansing speakers. Search www.ebay.in for the price and details. Most people are satisfied by the integrated sound card, which accoeding to me is not a good choice.