It has taken me a while to handle Russian text the way I want on all of our computers. Here is some advice - hope it helps.
Windows
The default Russian keyboard on Windows drives me crazy. It is the same as a Russian typewriter, which I hate. English on a Russian keyboard is still Qwerty, so even Russians are somewhat familiar with that layout. I prefer having the layout transliterated, so I don't need to think about it in either language. This is easy. Even if you type in Russian, this is probably a good idea. It won't take long to learn, and will make using a US keyboard easier. You also won't need little stickers on the keyboard.
Go to this page - http://ourworld.compuserve.com/homepages/PaulGor/kbd_e.htm - there are instructions in English and Russian.
Localizing Windows - This is a harder problem - getting all the programs to have menus in Russian. You need a Russian copy of Windows to get this. Same for each program. Not worth it to me to buy a Russian copy of Office to have a Russian spell check, but there are other options.
OpenOffice.org - there are localized Russian versions. It also has a Russian spell checker. And it is FREE. And doesn't crash.
Installing the Russian versions of chat software, web browsers, etc will give you those programs in Russian too.
Apple Mac OS X:
Apple has a sane phonetic Russian keyboard out of the box. Just turn it on - System Preferences -> Keyboard. Easy.
Mac OS can also be localized (have all the menus in Russian) for free. Go to Apple's Russian website, and download the latest system update for OS X. It will have Russian localizations for all of the menus. You can have one account on the computer in Russian, and one in English.
For Word Processing, you can use NeoOffice (like OpenOffice, but for the Mac). It has Russian spell check as well. Also FREE.
Linux:
Most modern Linux distributions have great Russian language support out of the box. If you install them as a Russian Locale, just about everthing is in Russian. If you have never used it, but have a spare PC that you want to be Russian-Friendly, I would recommend Ubuntu.
Dictionary:
The dictionary at rambler.ru is the most complete on the internet. Словари is the Russian word for dictionary.
Translation:
Google's translator is fast, and just as good as the other ones on the web. http://translate.google.com
Software translation can't help you with slang, context, nuance, etc. That said, this is one of the better ones. It is also faster than a dictionary if you have a few words you would otherwise need to look up in a passage of text.
Internet - General:
There are several ways of encoding Russian text. If you see garbage like Íŕ äŕííîé ńňđŕíčöĺ ďđĺäńňŕâëĺíŕ číńňđóęöč˙ ďî ŕęňč, the problem is that the code page was not detected correctly. In Firefox, go to View -> Character Encoding -> More Encodings -> Eastern European, and try different ones until it works.
This is similar in Internet Explorer.
Fonts and шрифты:
Chances are, the Russian fonts on your computer are awful. Download and install new ones, search on google for "шрифты"
Charis SIL is my favorite: http://scripts.sil.org/cms/scripts/page.ph...d=CharisSILfont
Doulis SIL is also very good: http://scripts.sil.org/cms/scripts/page.ph...d=DoulosSILfont
These will work on any modern computer.
