Hello Jason,
OS X 10.1 was better than 10.0, but in many ways not ready for primetime. Certain video drivers were not ready for older machines, printing times were horiffic, and it was just not ready for the big day.
I would encourage you to backup any data you may have on that system, and then upgrade to 10.2 Let us know how much RAM you have and your hard disk size... you might need to increase RAM.
Not sure why your downloads are not working properly. Perhaps it is in your browser... 10.1 came with IE, and that could be corrupting your downloads.
In my opinion, when you receive a new computer, either right out of the box, or purchased / given second hand, it should be automatic to reformat the computer and install the OS yourself. There may be other problems with the prior installation, or perhaps private files from the previous owner that you should destroy (hey -- if these were cars, and the previous guy left his shoes in the trunk, you wouldn't drive around for weeks with his stuff, would you?)
Let us know.
Christian
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Posting Virtuoso
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since Mar 2004