Our PC (Personal Computer) is a system, consisting of many components. Some of those components, like Windows XP, Vista or new Windows 7, and all your other programs, are software. The stuff you can actually see and touch, and would likely break if you threw it out a fifth-story window, is hardware.
Not everybody has exactly the same Hardware. But those of you who have a desktop system, like the example shown in Figure 1, probably have most of the components shown in that same figure. Those of you with notebook computers probably have most of the same components. Only in your case the components are all integrated into a single book-sized portable unit.
Software is the general term for information that's recorded onto some kind of medium. For example, when you go to the video store and rent or buy a tape or DVD, what you're really getting is the software that's stored on that tape or disk. Your VCR or DVD player are hardware devices that are capable of reading the software from a tape or disk and projecting it onto your TV screen, in the form of a movie.
Your computer is a hardware device that reads software too. Most of the software on your computer comes in the form of programs. A program consists of "instructions" that tell the computer what to do, how to behave. Just as there are thousands of albums you can buy on CD for your stereo, and thousands of movies you can buy to play on your VCR or DVD player, there are thousands of programs that you can buy to run on your computer.
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