Do you mean Microsoft Home and Student? The differences between that package and Office Professional (for instance) are: No Outlook, no Access, and no Publisher.
If you don't use Outlook for email, and you don't offer database services, and you don't use Publisher to do desktop publishing services, then it's a good deal. It's also ~$350 cheaper!!
I've tinkered with Scribus for desktop publishing instead of Publisher, but never really done much more than that. It's free, so if desktop publishing is important to you, you might be able to get Home and Office and just download Scribus to care for that need.
If you need Access, I believe you can still buy it separately for between $100 and $150 as a standalone program.
Reference:
http://office.microsoft.com/en-us/bu...101825640.aspx
Also, they have Home and Business, but the only difference listed from Home and Student is that it seems to offer Outlook. I would not pay $130 more just for Outlook. But, that is an option for you, if you like.
EDIT: I just noticed this fineprint at the bottom of the link:
Not intended for use in any commercial, nonprofit, or revenue generating business activities
That stinks...and is rather prohibitive. Hmm. If you are a student, you may be able to get Office through your school at great discount. Otherwise, you can consider buying a cheap version of Microsoft Works and getting an upgrade version of Office. It's a little convoluted to install them both, but going the upgrade route saves at least $60, IIRC.
I can never justify the Office price to anyone...it's obsurd! But, that's just my opinion and I'm a sucker for free/open-source software too.