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We just went through this.
I bought my college bound son the Macbook w/printer and 8gb iPod Touch for $999 (the printer and iPod were free on a rebate buy I had to pay tax on their full price). Also bought Office for Mac pretty cheap. Look at the price you can buy these things for on Apple.com, then go to your nearest Apple Store and tell them you want the same price. Ask for the education discount to get the deal above. My kid's pretty happy.
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