Abstract: A home-based terminal, or so-called bare-bones PC, includes a processor, which is capable of handling a high-speed data connection to a service provider. The home user would instruct the service provider to construct a virtual PC having user selected hardware performance characteristics (e.g. processor class, processor speed, memory storage size and speed), and having user selected software titles (e.g. word processors, spread sheets, games). The service provider would charge a subscription fee for the virtual PC, and would be responsible for installing and updating the selected software titles. Further, the service provider would be responsible for backing up data and for maintaining up-to-date virus protection for the virtual PC.