Hey Bro,
3.5 should provide a good start. I've heard people say that 3.9 is better.
The Amiga can play back MP3's but I'm not sure what rate that would be. Maybe someone else can chime in. And it does have the ability to play Divx, however, I think the player requires a PPC, which will not be an option under emulation. Once again, if anyone else knows different, speak up.
As far as web browers go, my favorite Amiga browser is Ibrowse 2.3. It does a pretty good job for most sites, unless they contain flash.
BTW, if that is your real name, then we share the same last name.
