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4GB is pretty much minimum spec now. Go with 8GB if you can afford it. Should be under $100 for a good set. And it's not about the OS hogging the ram. The OS will take as much ram as you can give it. The more it gets, the smoother it runs. The difference between 4GB and 8GB will be noticable, while going from 8GB to 16GB won't be, unless you are doing a lot of HD video or photo editing, etc.
On a more expensive motherboard, you basically get a bunch of extra features that unless you enjoy tinkering with things, you probably don't need. In the next couple days I'll be posting a review of a $220 AMD board. There isn't much different in actual performance when compared to a $120 board, but there are a TON of features that other boards don't have, for people who want them.
For your i7, you could just get a basic H67 board, although a Z68 will open up some features like hybrid SSD drives, etc. But again if you don't care for that, H67 is fine.
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