(MONEY Magazine) – You've finally decided that a PC for less than $500 is too good a deal to pass up. Once you get the box home, however, you may be a bit perturbed to find that the computer comes with Microsoft Windows and Works--a watered-down version of Word--but not much else. Welcome to the world of low-cost PCs, where prices are hard to resist and abundant free software bundles are hard to find.

Many of these machines are still great deals. Just don't blow your savings on expensive software. If you use Word or Excel at the office and want to use the same programs at home, you can get both by upgrading to Microsoft Office 2000 for $250. But if the only word processing you do is writing to cousin Bertha in Biloxi, and the only spreadsheet you care about is the linen on your bed, there are better ways to spend $250. We have compiled a set of must-have (and might-want-to-have) programs to fill all your computing needs.

The essentials. Call us biased, but we think software that helps you track your finances is a must. Quicken Financial Suite ($69) or Microsoft Money 99 ($59) will both do the job, but Quicken has a slight edge in tax planning.

To keep your machine in fighting form, pick up Norton SystemWorks 2.0 ($69.95). This top-of-the-line package of programs includes Norton Utilities to diagnose and fix hardware and software problems, AntiVirus 5.0, the top-selling virus-protection software, and six months of free upgrades from the company's website (www.norton.com).

A Web browser is one must-have you probably won't have to buy. Once you agree to pay an Internet service provider (ISP) $20 a month for Net access, you'll likely get Netscape Navigator or Internet Explorer as part of the ISP's free software package. For the most up-to-date security features, download free upgrades from the software makers' websites (www.netscape.com and www.microsoft.com). You can download Adobe Acrobat Reader for free from www.adobe.com. This program lets you open the so-called PDF (portable document format) files that you pull from the Net or e-mail.

The options. If you also want to download music samples and video clips, you will need RealPlayer or QuickTime, both of which are free. To download them, go to www.real.com or www.quicktime.com. True audio and videophiles, however, may want to spend $30 for RealPlayer Plus G2. With this version you can, among other things, adjust the color and contrast on videos and fine-tune the mix on music.

Parents who want to control where their kids go online should pick up Net Nanny ($26.95), which allows you to block access to certain types of websites and monitor where your children have gone on the Net.

Finally, don't forget a game. Two top picks are Sim City 3000 ($49.95), which lets you build cities, fight zoning laws and raise taxes, and X-Wing Alliance ($50), the ideal game for wannabe fliers and Star Wars fanatics.

Now you've bought and outfitted a PC for less than a grand. That should give you a grand feeling.

--BRIAN L. CLARK