Nine years is an amazing life for a computer. Five is considered long.
I have a new Dell laptop, and I love it, but you don't need anything as powerful as mine if you don't do heavy multitasking, like downloading multiple large files, listening to streaming music and surfing the web at the same time while a word document is also up . Any new PC will come with a minimum 2GB of RAM, or maybe 4, and if you're just surfing and using Word and Excel, you can really get by with 2GB, but the differential would be cheap enough to go with 4 anyway. I would go with the latest processor, Intel i5 (you could really get by with i3), as it's very fast.
No need for more than one CD/DVD drive unless you do mass copying of discs.
I think 500GB is probably the smallest drive most new PCs come with.
If your other drive is really 650MB and not 650GB, it's about big enough for 12 CDs compressed to lowish bitrate MP3(that's about the same size as one CD-R)!
Desktops are very cheap. For $350 you can get a Dell Inspiron 560 with i5 processor, 4GB RAM & 500GB hard drive. Other manufacturers should have similar configurations at similar prices.