I would assume $500 US, and you are in the US. I would also assuem that you need a whole box (case, power supply, motherboard, CPU, RAM, video, HDD, DVD, video card, and possibly keyboard/mouse). If you dont want a monitor out of the $500, you should be able to build a nice system for that.
AMD is generally better in the 'bang for buck' stakes. AFAIK ATI is currently a little ahead in bang for buck as well, but the whole GPU scene changes so fast it can be hard to keep up. With your stated use, you arent going to need an expensive video card anyway
If you have a preference for AMD or Intel, its best to get that out of the way at the beginning IMO.
nVidia is generally better for long term support, but the newer ATI GPUs are good (but its always a good idea to check before you go buying them). By the time that ATI discontinues support for the newer GPUs, the opensource drivers should be stable and at least decent.
As for 'quad core intel being cheap now'- what, on a $500 budget? The cheapest Intel quad I can see is a Q8300 ($150at newegg), and that is a lot more than the AMD options. Its also a socket that is already 'obsolete' (LGA 775).
4GB of RAM might be pushing things as well, even 'obsolete' 2x2GB DDR2 800 is $85 at newegg. Better off with DDR3, its faster, cooler (temprature) and only a few $$$ more. as time goes on DDR3 will get cheaper, while DDR2 will probably rise.
LGA 775 Core2Quad + 4GB DDR2 800 + a decent motherboard will add up to about $275-300. Doesnt leave much for HDD, DVD, case, power supply and a video card......($50 minimum for 500Gb, which is as small as I would go for the OPs uses, $20 minimum for a DVD burner). Do-able, but something is going to be junk IMO.
*edit-
X6 is $200, minimum. 4GB DDR3 is near enough to $100. Sorry, bad idea on a $500 budget.
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