I've been using Open Office for a long time, and I don't miss MS-Office a lot. The learning curve is not very steep and it is very similar to MS-office. The only thing, that I didn't like is the change in short cut keys, but you would get used to it after a couple of times.
Google docs is a very good option aswell, but the only "drawback" with it is that people have been concerned about storing their financial information on a "hard-disk" which is not in their control, and the data transfer is not httpS(ecurity), eventhough it is behind a password protected account.
And instead of Outlook you could use Pegasus which is a free mail client.
Overall, I think it is easily a saving of $300.
Sanjay.