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Pc recommendations please

I am looking for a new quite cheap pc for Grandma to replace the one she's got which has seen better days. I was surprised at the price of PC's when I had a quick look today in PC World. I was thinking much much less than £300! Am I kidding myself?!! She only really does e-mails and browsing the internet. She views and stores her digital photos, sometimes prints photos, she does most of her shopping on line a lot, uses ebay a lot, loves you tube and the news, itunes - those kind of things. She has an iphone4 so it would need to support that. The grandkids play football manager and FIFA 12 on it so it would need to do that maybe. A webcam would be nice but not essential. I might buy an ipad 2 after Christmas so it may need to support that as I use her pc when I'm there. I expect we could retain her current monitor (nice 19" flat screen) and keyboard? I really want cheap but is there any such thing. Suggestions and ideas welcome.

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