My nephew set this up for me and it was easier than I expected. Don't be intimidated by the technical stuff — most of it is just clicking Next a bunch of times. If you get stuck, the Help file actually has decent instructions for once.

I've been using computers since the early 90s and the answer to this has changed dramatically over the years. Right now, the best approach is to use open source alternatives when possible — they're usually free and often better than commercial products.

I posted this exact question on a newsgroup a while back and got a ton of helpful replies. Don't sleep on Usenet — comp.* groups are full of people who actually know what they're talking about, way more than some web forums full of script kiddies.

I learned the hard way to always back up before messing with this kind of thing. Burn a CD-R of anything important first. It takes 10 minutes and could save you from losing everything if something goes sideways.

First thing I'd do is reboot and try again. Sounds dumb but you'd be amazed how many 'tech problems' fix themselves with a restart. If that doesn't work, write down the EXACT error message and search for it — somebody on Experts-Exchange or a Geocities help page has hit the same thing.

Honestly the manual that came with it explains this pretty well if you actually read it. I know nobody reads manuals but for once it's worth flipping through. The troubleshooting section in the back covers the most common problems.