I am periodically asked by friends and family, “Should I repair my old computer, that just broke, or but a new one?”
That is obviously a question with alot of different variables. My first question would be how old is your computer, how much is it worth, and do you have the money/need/desire to buy a new one?
The key is to compare the cost of the repair, with how much the computer is worth. If the cost of the repair approaches the value of the computer or the cost to buy a new one, I would not have it repaired. If all you afford is to have it repaired, I would try to locate a friend who is good with computers or repair shop who will quote you a flat rate for labor plus parts.
If you decide not to repair the computer, consider donating it to a charity that repairs computers. These charities generally are aimed at bridging the “digital divide” by giving these repaired computer to low income families. The charity generally serves the dual purpose of training kids in computer repair.
If you have the money to repair the computer, but still really want a new computer; I would consider fixing the old computer. I would then use it as a kids computer, storage server, or “always on” internet appliance for checking you email without having to boot up your new computer.
Of course the storage server suggestion, is another article in itself. If you search the internet, you can find “how to” articles on the subject.
One last comment, and sorta a pet peeve of mine, just because “Windows” is broken; it does not mean the computer is broken. The hardware could be just fine. Often when people think their computer is “broken,” all they really need is a fresh install of “Windows.” (Course I think you should at least look at Linux….but that is a whole different article also)
Also, don’t fix the computer, just to get the data. The hard drive can be removed and the data recovered for $100 to $200 dollars, just as long as the hard drive is not what is broken.
Hope this helps. (If you live in Gainesville, FL and have that broken computer http://www.datatriangle.com/services . That is my shameless plug. 
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