Absolutely. With a fresh new build, compatibility won't be an issue unless you have old hardware or software that doesn't have support for Vista. Since you're upgrading Word 97, I recommend Word 2007 or Office 2007 Professional. Tremendous difference in interface and features. Wow, it's some learning curve you'll be facing. But a word processor is still a word processor no matter how much they change it. The core is always there. Here's what I have compiled as far as parts goes:
Intel Core 2 Quad Q6600 Kentsfield 2.4GHz 2 x 4MB L2 Cache LGA 775 Processor - Retail
PCI-express 2.0 support:
ASUS MAXIMUS FORMULA / SE LGA 775 Intel X38 ATX Intel Motherboard - Retail
OCZ Reaper HPC Edition 2GB (2 x 1GB) 240-Pin DDR2 SDRAM DDR2 1066 (PC2 8500) Micron D9 Chip Dual Channel Kit Desktop Memory
EVGA 768-P2-N835-AR GeForce 8800GTX 768MB 384-bit GDDR3 PCI Express x16 HDCP Ready SLI Supported Video Card - Retail
Those are the core. That alone will set you well over a thousand dollars already, but it's super duper fast. All the other stuff is cheap. Hard drive, DVD burner, case, power supply. It should set within your $1800 budget and should last a long time. The only thing is that motherboard doesn't have DDR3 support, but DDR3 RAM are so expensive now which is why I chose the DDR2 supported motherboard.
It LOOKS overkill, but it's raw power at it's best.