The cheapest I see here is $161.50. http://reviews.cnet.com/Microsoft_Windows_XP___Home_Edition/4014-3513_7-6534881....
Make that £161.50 in the UK, although the exchange rate is currently 1.00 United Kingdom Pounds  = 1.65540 USD. Yes, we know all too well how we get ripped off but there ain't nothing we can do about it. If we order from a US site we get charged import duty by good old HM Customs.

The XP update might be a lot cheaper but after seeing all the problems posted by people who went this route I wouldn't recommend it.  

You can purchase a full version of WinXP Pro for only $139 @ http://www.directron.com/winxppro.html

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http://www.infotechnow.com/shopping/shopexd.asp?id=492

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It was probably an OEM version

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I run Me becauase that's what came with the 'Package' that the Mrs (foolishly) wasted heaps of money on.
I must say, though, that as far as software is concerned we did pretty well.
We got the Me OS, MS Works, Word, Money, Encarta, Publisher, Frontpage, Outlook Xpress, (parts of) Office 2000, IMS shell, McAfee Anti-Virus and other stuff.
As I already had Office 97, I was able to install the missing parts to the Office 2000 and now have a complete Office program (although some parts are '97 model).
I think all that software (which we are both in a position to use all quite often) is worth many 100's of monies.
I think we did OK in that regard, anyway.

With ME, also we've never had an ouce of trouble installing or running any kind of program.

So, that's why I like what I've got - apart from the fact that it's all familiar to me, and I feel at home with it.  

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Maybe not your system so much as how whatever OS you choose is installed & set up from the start. This is the reason I leave that side of it to the pros. Then if anything goes wrong or doesn't work as advertised it goes straight back until I'm satisfied. 

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That must be why mine works fine. It came as original software with the Compaq package.
The program isn't even on a 'Windows' CD, it's on a Compaq System restore CD. 

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I suspect this is the cause of most of these problems. Proprietary computers like Compaq & Tiny often use their own versions of hardware. The hardware drivers posted on the individual hardware manufacturers' sites might not be compatible. You should always get these from the computer manufacturer's site. From what you're saying Brensec, this can also apply to pre-installed software like the OS itself. This could explain why the usual M$ Windows updates won't work properly - especially if you try to update from Win9xHagar to XP.