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I hadn't checked back in a few days, but it looks like you got your issue worked out. When I saw the back of the pc and your symptoms it just sounded like the old 270 problem...It really stinks that they are cutting so many corners these days to stay super cheap. I moved on from dell at the office in 2005 and bought micron pcs. Out of probably 50 microns we only had like 1 or 2 small problems compared to my over 100% failure rate with a batch of dell gx280s. Microns were all built and tested in the USA, and cost a little more, but saved tons of $$ in the long run with better reliability. Not sure if anyone saw it, but they just went under and took whatever was left of the gateway line they bought with them.
Other people I work with have still been having issues with whole batches of dells. The 755 models and others have been having power supply and motherboard issues. We've moved to mostly laptops and docking stations at the office. The laptops are more reliable from dell, but then you have the exploding batteries and overheating power supplies to always look for.
The GX260s were the last ones we had great luck with. I have bought a couple of those for parents and in laws lately off ebay and they have been really good. You can still get those cheap, just make sure to get one with more RAM.
There are some good deals on laptops on ebay now too. A 2 or 3 year old dell laptop can be had for cheap $$ and still has some life left in it. If you end up replacing that 270 a laptop may be good option for school etc.
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