TCMU2009: If I were to buy it and upgrade it immediately with a good, 650w or higher PSU, would it be a good starter PC? I don't need the absolute highest end yet I don't think, and I'm planning on upgrading at some point anyway. Or would buying a pre built pc from cyberpowerpc or something be my best bet?
But they are right. I"ve never heard of microtel either.
If you're uncomfortable as you've said before with building your own, then don't take the risk yet. Buy prebuilt. Though the hardware purists will cry foul, truth is you don't save money on DIYs anymore, not more than a few percent. You just get more freedom to choose your hardware. Also, the price of a good power supply is high enough to make that a questionable choice for upgrade on a budget. You're much better off finding a computer that needs RAM or a bigger HDD or a DVD combo than a good power supply.
If you get a quad or hex core AMD and 16+GB RAM, you can throw in a midrange gig video card and get a really good gaming experience. Downside is you're locking yourself into a motherboard for the inferior (speed-wise) CPU manufacturer. But it'll be cheap.
If you get one of the second-gen i5 CPUs with 16+GB RAM (and, really, 16+GB RAM is an excellent use of $100) and a 1 gig midrange video card, you'll also get a really good gaming experience. It'll probably cost you a little more, but you'll be able to upgrade the CU later when the i7s get cheap.
Cyberpower isn't a bad choice for a cheap PC. But I see you're from the US. If you're on the west coast, go to a Fry's and see what's on sale. Anywhere else, try a Best Buy or, if you can handle the crowds, WalMart. You're not looking for an overpowered monster, so you just might find a really good deal on something on sale locally. It's worth a look, anyway.