Yesterday, I ordered an xp2600 (the xp2400 are a far more economical choice, but what the hell ... :-D ) with a epox nforce2 mobo to go with 2 sticks of 256mb cas2 2700 memory. It all ended up @4800 SEK (would have been 3800 if i'd bought the xp2400).
I'll buy my peggie when it gets shipped in larger quantities, but as for now it seems to take forever... So until then ->
And about morrowind - it is fully playable on a xp1600 with 256mb RAM and a Radeon 8500. And that can be done with way under 300 dollares.