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Building a DAW

I have a Mac G3 with a 500mhz processor with 768 MB of RAM, and 20 GB of Hardrive space (small, I know). I would appreciate suggestions on the proper equipment to buy for long term use. I am on a budget but would rather buy a couple of quality things first and build on a good platform than to try and conquer the DAW world all at once on a limited budget and end up with a half ass studio.