Try this out:
http://www.zegeniestudios.net/ldc/
It's a distro chooser test.
It sounds like you could use either openSUSE or Ubuntu. Those are the best that match your description.
GIMP - cross platform
A decent media player - MPlayer, or VLC (also cross platform)
MSN - Pidgin supports MSN protocol
Roxio media creator - Either use under Wine (
http://www.winehq.org/) or use somethign like k3b
utorrent - cross platform
EUO (a online game) - If it's online, you're good
1. Will it run the hardware I have (a medion graphics tablet and I plug my Sony Ericsson into it as well to port my music to it)
It will either work out-of-the-box, or you may have to do a little searching, but it's actually very easy to find drivers.
2. Will my motherboard drivers work with it?
Linux has good driver support majority of the time. It should work straightup.
3. Will I need a firewall program?
You don't really really need one, but have just in case. Don't spend too much time looking for one.
BTW, Linux is tons better than windows, do make the switch. Also encourage your friends to do the same.
As for the laptop, It doesn't sound messed up, just in need of an OS, try to install something else in there.
rabbit2345