IMO, any new computer will do what you want it to. 1 gb or ram can't hurt anything.
www.tigerdirect.com is where i buy my computer stuff. If I were you I would buy all my upgrades from someone besides dell. You can find some good tech deals on the web. So just get a monitor, and barebones pc from dell, and do your other shopping on the web.
There are a lot of free programs. FLAC, SHN, CDWave, whats that audio editing one...
I would recomend getting a DVD burner and Nero. I use soundforge to cut all my tracks up, but cdwave will do that for free.
1. Transfer wav files to your hard drive.
2. Open up your editor. ala cdwave. Listen to the track for the break. Split it right before the beginning of the next song. I then take the splited wav, save it (ala MMW2004-10-11s1t2), and then close the small wav. Basically you chop off the first song and save just it, then chop off the second song and save it. etc.
3. You will have a wav file for each track. You can burn an audio cd from there, making sure that it is seemless. Or then flac it.
4. Open up flac. Add files. Encode.