Great insights.
What will you plan on doing with the computer?
Writing text documents, surfing the net.... You do not need the latest model. A low end one will do all these things and you will be able to get a better monitor with your savings.
As suggested above if you go for a desktop, the LCD monitors are a big plus. They use less electricity and save space. Sara loves her 21 inch flat screen. If you spend alot of time in front of the computer, I would suggest getting a big monitor.
512 of Ram should be enough if you only use your computer to surf the net, use email and basic games.
I would focus on getting good protection for the computer once it is connected to the internet. (Firewall, spyware removal/blocking, anti-virus)
For a printer, you have several choices. It depends what type of things you would like to print. If you are looking to do picture quality prints you might look at models that are good at doing this. If you are looking at printing mostly text documents stuff then I would suggest going with the cheapest inkjet one. You can problably get one for around 60-90 CAD. It all depends on the number of pages you print and how much quality you want on your printed documents. If you send faxes everyone now and then, you might want to look at those all purpose machines.
With the new computer you might look to have a memory stick input so that you can remove the memory stick of the camera and plug it directly in the computer. It saves time and it is more efficient. You can then browse the memory stick like if it was a folder in your computer.
Here are some links from futureshop.ca (A canadian electronic store)
http://www.futureshop.ca/catalog/proddetail.asp?logon=&langid=EN&sku_id=0665000FS10068635&catid=#
599$ after rebates.
http://www.futureshop.ca/catalog/pr...665000FS10068730&catid=22333&logon=&langid=EN
299$ after rebates.
http://www.futureshop.ca/catalog/proddetail.asp?logon=&langid=EN&sku_id=0665000FS10069816&catid=
A decent printer with good reviews. 79.99$
Hope this helps!
This computer should last you 3 years. Then you can probably upgrade for more ram or buy a new one after this time.