TECHNOLOGY | How you can cherry-picl a TERRIFIC COMPUTER

YOUR PORTFOLIO may be begging for mercy, but think of the tech downturn as a double-edged sword. The profit problems, layoffs and miscellaneous carnage in the economy's computer sector mean manufacturers are begging for your business. Basic models can be bought for as little as $750. Truly powerful machines, featuring Intel's new Pentium 4 processor, can be had for less than $2,000. (In 1998 a Pentium II computer with one-fourth the computing power of a Pentium 4--cost at least $3,000.)

What stands between you and your dream machine may be a Best Buy computer salesman like Stan, who recently told a shopper: "You're going to need at least a one-gigahertz processor, 128 K of RAM, at least 20 gigs and a DVD with 32 megs on the graphics card." And Stan was only warming up.

Relax. In this story, we'll demystify the PC by explaining what's important to know, and reveal how much you should expect to pay for various options. Later we pick the best computers among the 47 we tested in seven categories, from big desktop models to ultralight laptops.

The minimalist

RISA HOAG doesn't ask much from her computer. But the one thing she absolutely requires--and the number-one reason people upgrade--is speed. Hoag's four-year-old Gateway computer was choking (and sometimes crashing) on spreadsheet, word-processing and presentation-program tasks. Because time is money, Hoag, who is president of GMG Public Relations, in Harrison, N.Y., needed something faster in a hurry.

You should follow Hoag's lead. If your machine is taking uncomfortably long to run newer software, it's time to upgrade. For example, the new Windows XP operating system (due late this summer or in early fall) will be difficult to run on a computer with anything less than a Pentium III processor and at least 64 to 128 megabytes (MB) of random access memory. For those of you still using machines that struggle to run programs in Windows 95, it's really time to move up to something better.

When buying a new computer, start with the piece responsible for speed: the processor. If you think of the computer as a brain, then the processor is responsible for higher thought. The power of the processor is measured in megahertz (MHz), which is the speed at which it deals with data. For example, a computer boots up in two minutes with a 366 MHz Pentium II processor, or chip, versus 45 seconds with a 850 MHz Pentium III chip.

The cheapest computers, running from $750 to $900, have chips in the 700 MHz range. They are adequate for e-mail and most Internet use but tend to slow down under the weight of complex tasks, such as video games, streaming video and DVDs. Computers with chips between 800 MHz and 1 gigahertz are sufficient for nearly anything, and sell for $1,000 to $1,500, including a monitor and all the extras. For most users, anything in the 1-GHz-to-1.5-GHz range is overkill--like hiring Einstein to balance your checkbook--though if you crave realistic video games and DVDs, you will appreciate the extra muscle these chips provide. Expect to pay $2,000 to $3,000 for these thrills.

If the processor represents higher thought, RAM (for random access memory) serves as the computer's short-term memory and allows the machine to juggle thousands of complex equations. The basic machines on the market have 64 MB of RAM, but 128 MB is becoming the de facto standard. Don't scrimp on RAM, because today's software sucks up this memory, and you'll need as much as possible to work quickly.

Sorry, but you need to be aware of three different kinds of RAM: D-RAM, DDR and RD-RAM. Standard RAM is D-RAM. The more expensive DDR or RD-RAM communicates quicker with the processor but for home users isn't worth the cost.

Hoag ended up buying a Gateway, her fourth since 1991. Her new machine has an 866 MHz Pentium III processor and 128 MB of D-RAM--plenty of power for her home-office needs--all for less than $1,500.

The big box

WHEN Wes Townsend graduated from Rutgers University, he got a free-lance job creating graphics and animation--but he didn't have a computer up to the task. "I needed something that could really handle graphics, could really give me lots of power, and could store all the project data," he says. While most home users don't need the raw power Townsend requires, his case shows what features you can get when you buy a Cadillac.

Graphics are the most complex functions that personal computers are called upon to handle. Townsend, who commutes between New Jersey and North Carolina for his consulting work, knew he needed plenty of RAM to juggle the equations and software tools he uses to create his projects. And for someone like Townsend, who stores massive graphics and animation files that take up lots of space, the hard drive was equally important.

The hard drive is a computer's long-term memory and storage center. When you start a program on your computer, it is called up from storage on your hard drive. Every word-processing document, every music file, every e-mail you save is stored there.

The need for voluminous hard drives has become crucial. Cheap computers start at about 10 GB of storage--equal to a stack of 7,112 floppy disks. But that only suffices for basic applications. Music and video files take up at least 5 megabytes of space per five-minute song or 30-second video clip, and complex programs such as Microsoft Office can eat up nearly half a gigabyte of memory.

Townsend decided on an 18 GB hard drive for his graphics files--but you may want that capacity for music downloads and games. He also ordered a graphics card with 64 MB of video RAM. That will add a minimum of $300 to the price of your computer (and can run up to more than $1,600), but it will give you the highest-quality video for your games, DVDs and Internet video clips. Townsend's computer also came with a CD-RW (read-write) drive for saving his animations onto CD--which you could use to save those big music files. If the computer you're looking at doesn't come with CD-RW, expect to pay $50 to $75 to upgrade. All told, his price tag topped $4,000.

Bigger still. Your computer should have some expandability: at least two universal serial bus (USB) ports and at least two peripheral component Interconnect (PCI) slots inside the box. The computer industry has agreed on the USB standard for nearly every imaginable device that can be plugged into a computer, so for the time being, every new technology for your computer will use a USB port. Your computer's performance is enhanced by PCI devices, which include such components as modems, game cards and sometimes video cards. Unfortunately, most of the USB and PCI slots are already occupied on some new PCs. Make sure the machine you buy has a couple of each left for you.

If you want to replace your TV, you can buy a TV-tuner card. This card, which goes into a PCI slot, has a standard plug for your home cable. For anywhere from $50 to $400--although most tuner cards cost $75 to $100--you might never have to buy another TV.

Money matters

ONCE YOU know what you want, decide what you can afford. Starting with a limit is a good idea for any buyer, lest you be pressured into buying expensive features you don't need.

Many consumers wonder if they should spend more for something newer, or wait a few months for the latest technology to fall into their price range. But with technology constantly improving, the money you spend will probably extend the life of your computer only by months, and waiting will bring even more innovations tantalizingly just out of reach. Just assume you'll experience some buyer's remorse, bite the bullet, and buy.

Make a list of the hardware and software that comes with your purchase, along with the company's service and support plans. These factors can make the difference between an affordable computer and a real value.

For example, Dell bundles some models with software that allows your desktop to load information into certain cell phones--great for keeping your address book handy. Gateway bundles a suite of phone tools for Internet telephony and faxing, and also includes software that allows parents to screen Web sites visited by their kids. The vast majority of computers come with Microsoft Works, which includes basic versions of Word, Excel, Money and other Microsoft titles. An extra $100 to $200 buys the Microsoft Office suite, which has full versions of Word, Extel and Money, plus Outlook (e-mail) and PowerPoint (presentations).

IBM and Toshiba bundle Lotus SmartSuite rather than a Microsoft package. SmartSuite includes Word Perfect, Lores 1-2-3 (spreadsheet) and Lotus Notes (e-mail). The fact that most computer users work with competing Microsoft programs makes SmartSuite less desirable.

Pull the trigger

SO YOU'VE settled on your new machine: It has a configuration you like, and it's within your budget. Time to pull out the credit card, right? Almost.