I need recommendations.  I have a desktop that is 6 years old, slow, and full.   I have a wireless network that is wired into and contolled by the desktop, (set up by myself, not sure how I did it) that also runs a laptop wireless-  an x box wireless  and a PSP wireless.

I need to replace the desktop - currently running the home version of XP (I think) that came free on the computer.

We mainly use it for internet/e-mail, I run the stereo off it through itunes, and pictures are stored and edited. (No video yet, but alot of music) It is also used as the base for all the wireless stuff.

Need suggestions as to minimum processer, memory, hard disk, etc.  Help !

Also any suggestions about getting the music and the pictures off the old machine and onto the new machine.  Or should I just keep the old machine running and somehow network it in with the new machine. 
Best way to approach this would be with a budget first....
Once we know that better advice can follow...
There are some great deals out there that meet your usage REQUIREMENTS so let us know.
As far as the other info and drives Data that's a relatively easy SOLUTION and there are a few choices of how to go about it...
Welcome AboardI really dont want to spend $1000.   But if I have to I will.  I would like to get by for about $500 but I dont know if that is realistic.  I certainly is for your needs...as i said decide on a number ...
You would be suprised what you can get for 5 Bills these days.The number is $500 CASH.

What can I get so that I can hold alot of itunes and basically run my stereo (out of the computer to a AMPLIFIER and speakers), store alot of pics,(maybe some video down the road)  surf the internet  (have cable) and use it as the base for the other wireless things I have in the house (xbox, laptop,psp)

 I know very little about processor speeds, memory speeds, hard disk storage but I want to be able to do the above without screaming at my machine because it is slow.  What do I need?  (be gentle with the acronymns)

I already have a nice monitor and adequate printer so I dont need one of those package deals.

Also, do I need to hire someone to get all my old itunes and other files off the current machine and onto the new one?  If the store offers this service is it usually a good idea?  I am dreading the task if I have to do it myself. I'd recommend getting a computer with a 250-500 GB hard drive and 2-4 GB memory and an AMD Athlon X2 or an Intel Core 2 processor.Do you need a keyboard and mouse?
Do you play any games, or just play music, VIDEOS, and surf the net?
What operating system do you want?  I'd guess you have Windows XP on that machine, do you want to stay with that again or move to Vista?  Vista is newer but of course different.
Also, can you buy online?
For $500 you can easily get a great machine for your needs by the way A machine that meets your requirements need a reasonable hard drive with sufficient storage space. I would agree with Ironman, 250 to 500GB would be perfect. I would take an Intel Core 2 processor if possible, very solid and fast. Just make sure that you have all the cables and accessories you need to run your business.a machine that meets their requirements could be a 350 Mhz P2 with windows 98SE and an 8GB HD.

a MODERN machine that meets those requirements, however, needs to be more powerful for no reason in particular.