Ubuntu 7.10 was released just a few days ago. It is a highly rated, full blown distribution that should easily accomplish all of the functions you mentioned. There is a free download.

The other major distributions - Suse, Debian, Mandiva, and Red Hat can also be considered. Remember that there are thousands of programs available for linux use. There are varying degrees of difficulty with installation and setup of many of these applications. Easy of use is the thing all of the distributions are attempting to accomplish.

I would feel remiss, if I didn't mention the distro which I use. It is Xandros 4.0 Home Premium. The premium version comes with a 400+ page manual and a built in security suite. You can find it for about $50 on the internet. There is a free download of Xandros 3.0 which is much less capable and does not contain the security suite. It felt good from my first use. Software installation is easier with Xandros than any of the other distro's that I tested before settling on it. I was productive from the beginning. XP users have little trouble adjusting to Xandros.