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"Don't bother trying to use the ports system. It simply won't co-exist with the PBI system. The Kports graphical port manager quits constantly. The command line doesn't work because the ports won't install properly."
Don't reduce the ports system with the KPorts program. From my experience, using ports (cd /usr/ports/what/ever && make install) works fine.
"I then decided to install Ubuntu Edgy as a dual boot. Ubuntu can't resize UFS partitions."
Is this a PC-BSD or an Ubuntu issue?
"PCBSD is no good for newbies due to a lack of software. "
Cannot confirm this. My neighbour now uses PC-BSD sinve version 1.1 and is very happy with the base system, the KDE desktop and the software availabe via the PBI directory. He never complained about not finding a program fitting his needs. Along with the provided PBI packages the FreeBSD ports can be used as well, there are 20,000+ applications (if I remember the number correctly) available. Next to the ports, every POSIX compatible program can be compiled and installed with PC-BSD; the classical "./configure && make && make install" sould still work.
How many (and what) applications do you suppose a newbie to need?
In my opinion, it's not the amount of available software, it's the easieness to install software what's important do a newbie. Newbies in most cases don't know what they want and therefore cannot find software they really need.
"Experienced users can simply install Freebsd or desktopbsd (and update to Freebsd 6.2)"
I think you're right. That's what an experienced user would do. I've done the same since FreeBSD 4.0. :-)