With regard to option 1, do you need this much processing speed? If you're not gaming, I'd recommend changing to a "slower" Quad Core which will give you better overall performance.

with all the computers ive had ive always needed more processing speed. The cpu is most always 100% unless its just idleing and id like to just go all out on this computer as much as i can. So option one should be fine if your saying it has a ton of speed.

I guess i should have said what id like in a computer really before i posted:
-runs runescape hd with no problem
-play some games such as command and conquer, (might even get into some of the games we play like halflife 2)
-relatively cheap (so doubt alienware or mac. i really did look into both of those and they were all +1.5k+ for what i wanted)
-will last for a while as i get through college and hopefully beyond if the technology in it doesnt expire too quickly.

Everyone's hardware tips seem solid in my opinion, but nobody has mentioned the software side. Ditch Microsoft Works if you can, unless you *really* need it. If you're looking for something on the cheap to compete with Office, stick with Open Office suplimitented with Windows Live Essentials.

If you have the option, ditch the free antivirus trials, and install Microsoft Security Essentials now that it's officially released. It's free from Microsoft, and it does run great and have good heuristics.

Quad cores will have a slower overall clock speed but the performance will be twice that of a dual core of the same clock speed, effectively. Therefore a quad core would be the way to go if possible as it will be faster on the whole. Some applications are not optimised to utilise four cores effectively and therefore require a higher clock speed, meaning a higher-end dual core is preferable; usually the case with games.