My mother currently has a secondhand desktop PC and uses dial-up to access her Yahoo mail. She basically word processes, with occasional use of Excel to do the Christmas card and holiday postcard address labels. My dad still does the odd bit of accounting, but would run a mile from spreadsheets. We're basically talking letters of complaint to M&S
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The iOS curated computing thing isn't entirely there yet, but Apple are working towards it: I suspect some time in 2011, when they revamp MobileMe and officially launch iWork.com, there'll be some option to do full scale remote backups from idevices. Unfortunately Apple haven't yet come up with a backup option for iOS that's as neat as the Time Capsule is for desktop OSX. Hmm.
The Keyboard Dock is about £60. Not much use as a travel keyboard, but works very nicely on a desk, and the iPad can charge while plugged into it. The Airport Express is around £60 and works fine as a wifi hotspot and firewall/router -- but needs configuring from a Mac or PC (Apple haven't yet released an Airport configuration utility for iOS). You'd still need a broadband connection with cable modem or ADSL modem, but the modem is usually bundled with the connection when you buy one (unless you go really cheap). NB: If they've got a BT line and are close enough to their exchange for ADSL, I'd recommend going with ADSL from Be Unlimited -- they're competent, they don't do stupid traffic shaping tricks, and I've had good experiences with them. Virgin are best avoided if at all possible.
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