Or alternatively:

Ubunutu Linux £0
Mozilla Thunderbird £0
Open Office 2.2 £0

I hardly Windows on my home PC anymore. Takes a little more work and understanding to get used to Linux (which is no bad thing), but it works, and unlike Windows, it continues to work without getting slower the more software you install. It's virtually impossible for a virus to do any serious damage, no spyware installing itself.

Also, loads of open source software running on Linux, most of it FREE.