I have to agree: A free 486 is good, but not if you have to spend $150 to 'upgrade it' to make a handfull of games playable.
Again I say two days ago I got a 1.33Ghz Athlon, Radeon 7500, ATI MB, power supply and fans, and using a spare ram chip I had and a spare 8gig HD, I've got a mame monster for less than $200 bones total.
Case? Who needs one......screw it down to a piece of wood. Done.
From Pooga's post above:
>>IDE 25gig drive WD - $54
(You can find 10 gig drives for 1/2 this price, which will easily hold all the mame roms, windows, Mp3's ,etc...tho perhaps not much else and you're paying more per megabyte than you would if you spent a few more bucks than $53 to get get, say a 30 or 40 gig HD which is where the "sweet spot" is right now I think, maybe its 80gigs...)
>>ATI Radeon VE - $33
Good Choice....this board will even let you play modern PC games on it, tho at lower resolutions.....for another $20 I'd consider the Radeon 7500, which is significantly more powerful...on the other hand, if you absolutely will not play a PC game on the box.....its not necessary.
>>ATX 400W case - $43
Hmmm..to me this is too much. Buy a 300 watt power supply for $15 bucks
and skip the case...it just gets in the way.
>>Micron 265meg memory - $22
Yup....remember when ram was 300 bucks a meg?
>>CDROM 48x (a little over kill imho) - $20
$20 bucks is $20 bucks

Mcdonalds for 4, or 2 drinks at a decent bar

>>AMD Athlon XP 1900 (1.6Ghz) + Shuttle mobo $138
Ehhhh.....ok......this to me is also overkill, way overkill if you want a budget.
Pooga..get an XP 1900 and only a 25 gig HD?

Stick with a Thunderbird athlon or a XP 1500 or 1600 to save money.....
All of course my 02 cents, your mileage may vary. Still the idea everyone here is chiming in with is the same: What you got for free is just that...free. I wouldn't spend a dime in upgrading it. If you're going to spend $50 bucks to upgrade, you should spend $150 to do it right.