Welcome to the forums Ajay! Below are my thoughts, I'm sure others will follow with their own:
revolutionary_one wrote:1.6+ p-M
256MB sodimm [one dimm, will be upgraded with a seperate 512MB stick]
DVD-CDRW combo
64MB ATI Mobility Radeon 9600 [for the ONE game that I play CounterStrike: Source]\
14.1in. screen [sxgaor xga will do, assuming i can get either to run at 12x10 comfortably]
6-Cell batteries
5400 RPM Hard Drive [either 30 OR 40 will do, but for me 5400 is the sweetspot and is a requisite]
IBM 3-Year warranty with accident [Thinkpad?(R)] Protection
Off the bat it sounds like a T42 would be a good place to start - the MR9600 seems to be the same or better than the X300 that ships with the T43.
1)intel b/g vs. ibm a/b/g
-i plan on running linux, ibm is favorable, but is it really worth the extra 50bucks??
Who runs 802.11a? Apple sealed its fate, thankfully. Your major concern here should be driver support under Linux, which I can't really help with.
2)sxga+ vs. xga
-how comfortably, and what degree of distortion can i see with a normal xga lcd with a native res of 10x7 running at 12x10
SXGA+ is a world of difference better than XGA, but it does add to the cost. I'm not sure you can effectively run an XGA screen at 12x10 - the default behavior is to do the "scrolling virtual desktop thing" and even if you find an app that scales the image, small text would be impossible to read. If your budget supports it and you are used to running at a resolution higher than 10x7, go with SXGA+ and you won't be sorry.
3)warranty levels
-what's the difference between: "Thinkpad Protection for Global Model Plus Machine" and "TP Protection - 3 years plus 3 year Depot servicepac"...i honestly am comfortable with just being able to ship it in at IBM's expense [as i know is done very well an timely], and dont need "Depot" service...but Warranty is a biggie for me, as is accident protection, maybe illucidate some of these for me...
Yeah, warranties are very important for expensive and fragile machines like laptops. I can't tell what the difference is between these, but I imagine it's just for different models. Depot seems to have an OK reputation, as long as you remove your HD/PC cards/anything else that isn't broken before you let them touch it.
Also it's important to know that i am a student at a US university and have access to a education discount
4)how does this compare with an EPP discount which i *MAY* have access to...
Your EDU discount depends on your school. I stumbled on a way to apply any school's edu discount to the entire range of IBM notebooks before, but I doubt that's a legitimate tactic

If your school has a deal with IBM, they'll likely have a link to the school's IBM store page (or possibly a 3rd-party vendor store). Some schools, like UC Berkeley, UPenn, and Harvard have the maximum ~30% discount, which is awesome. You may be constrained by the available models the school offers, too. Check with your school store.
5) I'm on a strict 1600-1750 budget...i know its definately possible
Yep, especially if you go with the T42.
6) And finally [for now] - what is USUALLY the best time to buy a thinkpad directly from IBM, ive been calling in and comparing prices quoted for various models, and after deciding on a T42, but im baffled by the degree of specs vs. price differentials accross the board on the t42's ive been surveying since December. Who here has broken the IBM marketing techniques code, other than Bill
I know this is a long post, but it's fairly crucial to my purchase before July , thanks everyone, take care
No idea on this one, but over the last couple of months, T42 prices have been dropping quite regularly as the T43 takes over available inventory. I assume pricing decisions are based on a secret sauce mixture of inventory, popularity, parts contracts (like LCD display types), and market anticipation (models that are getting superceded by replacement T43s etc.) And there's always the Express "turnkey" discount. I'd say that now would be a fine time to get a T42 before the selection gets scarce.
And last of all, check with Bill - his prices and definitely his selection can be competitive with a lot of school's edu discounts.
Good luck!