I currently have a sony vaio RX-640 (1.3 Ghz celeron processor, 512 mb ram, 64 mb video card, 60 GB HD). I was thinking of upgrading my system.
New Motherboard,3.2GHz CPU , FAN , CASE , 2 GB RAM. Then Plug my old stuff (cd,dvd,mousekeyboard,monitor,radaen 8500 64mb video card). The ram is DDR pc3200, 2 - 1 GB chips for $150, buy off of some guy in the paper (classifieds). The bottom line is $388.29, i think the computer would be pretty good for a few years. Heres the site http://www.tigerdirect.ca
anyway, i also can not recommand to set your budget too low. but it also depends on what you wanna do. if that celeron you had lasted that long with you, then you might be of well with the upgrade you choose
I'd agree with Ian on this. Save your money for another couple of months and as soon as the new line of processors come out, the previous models will go down in prices and you'll get a much better deal.
On the other hand, if you must upgrade now, and you dont play a lot of games or run any other apps that require a good CPU (media encoding/decoding, 3D animation/redering, etc.) then that celeron is fine. Otherwise you might want to look into these processors: