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You might think about getting a Dreamcast. Yeah, its not the "latest and greatest", but it did have great graphics, great games and the console and games can be had for cheap (and you could get quite a large collection of games for *very* cheap, see vsp's message a ways up). Only downside is online play. I don't really know to much about setting it up on the DC, because it was a pain in the ass.
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