Moving to anything remotely current with almost definitely require a new
power supply. ATX 2.0 or something like that.

That's the bad news. The good news is that you can do it anyway.
Here's from MicroCenter, although you can probably find equal or better
deals from other etailers.
Motherboard: $55-15 rebate = $40:
Entry-level dual-core CPU: $60
1GB RAM: $35-15 rebate = $20
That leaves $30 for a power supply. Not easy to do, but if you can
stretch another $10, then there's this:

ECS isn't the best motherboard supplier but I've a couple of systems
with their boards and they've been fine. It has integrated graphics so
as long as what you're doing isn't too demanding that'll do. It has 1
PATA slot for your existing IDE drive & CD and has SATA ports if you
upgrade the drive later.

CPU: You're not going to save much dropping to a single-core.

1GB RAM should be sufficient. This RAM is rated for faster speeds than
the mobo supports so it should be rock-stable running a little slower.

I don't have much experience with the Antec Basiq PSUs but I did start
using one the other day.

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