Any software? You at least want to be getting XP as the OS there.
It is a fairly high spec machine, and may well be worth £400 but only if you need a machine that high spec. You could find something for less if you are just doing a bit of Word, Excel and watching the odd DVD.
You don't say anything about Modem/Network connectivity or getting a mouse, keyboard and speakers which if you don't already have quickly add cost!