First off, do NOT get Microsoft's Windows Live OneCare!  According to AV Comparatives(Comparatives Tab, Feb 07 Report)*(and a direct PDF link (http://www.av-comparatives.org/seiten/ergebnisse/report13.pdf, pages 6 & 8), it fails in all tests, and does not even RANK on their qualification scale.
Moving on...

 Spyware: 

Use a combination of multiple spyware programs.  I recommend Lavasoft's Ad-Aware SE Personal AND Safer Networking's Spybot Search and Destroy.

 Anti-Virus:

I have heard great praise for Eset's  NOD 32.

    However, when examining the latest AV Comparatives report, Avira's product fairs better.  They also have a free version.

 Microsoft Office?

You really don't need to waste $400(!) on an office suite you likely don't completely utilize anyway.**  Use OpenOffice.org, a free, open-source replacement for M$ Office.

 Web Browser

I ALWAYS recommend  Mozilla's Firefox.  Why Switch? 

 

 Anything else you recommend? Tell Me!

 

 *I can't produce a direct link, due to bad webdesign on their part.

 **I know I don't.