Name all the "alternative" applications (differ from popular/standard choice) you use and their functions:

Opera - web browser
xplorer2 - Disk explorer
Diskkeeper - Disk defragmenter
Media Player Classic - Video viewer
foobar2000 - Music player
nod32 - anti-virus
Sygate Firewall - firewall
Omega Drivers - ATI Radeon drivers
Litestep - Desktop shell
Windowsblind / LogonStudio / CursorXP - Windows skinning
BCDC++ - DC++ client
utorrent - Torrent client
Flashget - Download manager
CDisplay - Manga viewer
Spy Sweeper - Anti Spyware
SpyGuard - Anti Spyware
MSN Plus! - MSN Messenger extension
FileZilla - FTP manager
CloneCD - CD burner
Daemon tools - CD image reader
PowerISO - CD image reader
Metapad - Notepad
XP Manager - Various tweaks (Registry cleaner...)
FRAPS - SS capture
ffdshow - Multipurpose video codecs
Real alternative - Real video codec
QuickTime alternative - QuickTime video codec
VirtualDub - AVI editor
Wallpaper changer - wallpaper changer

Not sure how "alternative" they are, but here are a few programs I use...

shell: Litestep
browser: Firefox
mail: Thunderbird
im client: Miranda
anti-virus: AVG
adware: Ad-Aware
malware: Spybot, Spyware Blaster
firewall: ZoneAlarm
music: iTunes, LastFM player
CD burning: Nero 6 Ultra
file finding: Limewire, µTorrent
video: Quicktime, VLC Player, DivX, Media Player Classic
calendar: Rainlendar
system stats: Samurize
zip utility: 7-zip
file transfer: FileZilla, Secure Shell FTP
hotkey: AutoHotkey
registry cleaner: RegSeeker
icon changer: CandyXP
icon2png converter: @iconsushi
album cover finder: iTunes Art Importer
logon screen changer: LogonStudio
video conversion: RADVideo
file hacking: ResHacker
FLV converter: RivaFLVEncoder
iPod2computer: Yamipod

I thought you had to pay for Sygate?
I'll just add things:

Freeware:
DNA Drivers - ATI/NVidia drivers.
OpenOffice - Opensource MS Office clone(might as well be)
GIMP - Opensource Photoshop clone(might as well be)
IrfanView - Kickass Image Viewer/Saver. Supporting almost all extentions.

Stuff you must pay/pirate for:
CD Imaging - Alcohol 120%
Editing audio files - Adobe Audition 1.5(formerly Cool Edit Pro)

Shareware:
Instant Message - Trillian(now supporting GIM)
iRC chat - mIRC
File compression - Winrar

I'll add some later sometyme later.

Sygate Personal Firewall is 100% free.

You use DNA drivers? I think they're inferior...

Only thing I can think of that hasn't already been listed is Total Commander, by far the best file managment program I've used.

Side note; what themes do you guys use with Litestep?

right now im using a heavily modified version of the Jx_lite

AVG all the way!

norton/macaffe(sp?) is a huge resource hog (about 20% of your overall resources at any given time)

nod32 is better than AVG even.... takes less memory and is VERY effective.

but it's not free

I didnt say I used them, I just use official ATI drivers, I mean I havent played a resource demanding game for a while so whats the point?

I use my own, currently unreleased theme. It's pretty bare but it matches stefanKa's InspiratSE Windows Style.

if you read my first post correctly, I stated "Name all the "alternative" applications (differ from popular/standard choice) you use"

It's not because it doesn't suit your need that you HAVE to settle for a less quality product, especially if the improvement comes at no cost.

I mean I don't have a NEED for free money right now, but why not take it?

Could you give an explanation of why you chose these alternative programs as opposed to the default ones?

Like, I'm looking at foobar2000 and it's pretty cool and it's got powerful functions but does it have skins? I like Winamp cause you can skin it even though it probably uses up a lot of resources... But I don't know a lot about this kinda stuff.

And what about programs like Litestep? Do they totally replace the shell? Does it use less resources? Less clutter?

Also, I've heard that AVG isn't that great. Is AVG the best FREE freeware anti-virus program out there?

Compared to the rest AVG is the best. But it falls pretty short compared to Nortan. Plus anything is free if you try hard enough.

hmm AVG is probably the best free, but certainly not the best overall.

foobar2000 is the best music player out there if you care about QUALITY of sound. It's graphical capabilities are rather weak, although there is a plugin you can install to fully mod it, but it's not very popular (meaning there's not a lot of skins). But who cares about graphics, it's about the MUSIC.

Litestep may or may not use more than explorer. It depends if you have a heavily loaded theme or not. Minimal themes run VERY fast. And yes it totally replaces the shell, to the point that regular Windows users get confused and CANNOT navigate properly without instructions (this is less apparent in certain themes, which are "explorer-friendly").

Opera - the best browser, I've mad a thread about this.
xplorer2 - An improved version of Total commander. Dual pane navigation is a must.
Diskkeeper - Windows default defrag is pathetic, with little options and advanced automated schedule.
Media Player Classic - Fast and supports everything with the right codecs. That include real and quicktime formats.
nod32 - Deemed to be the BEST antivirus program avalaible, catches more virus than anything else. Very compact and not a memory hog like McAfee or Norton.
Sygate Firewall - Very efficient and fast (unlike ZoneAlarm...)
Omega Drivers - Improved drivers with more options.
Windowsblind / LogonStudio / CursorXP - Used to complement what Litestep can't skin.
BCDC++ - DC++ client + Bandwidth limiter
utorrent - Best torrent client ever. Fast and fully functionable
Flashget - Fast and efficient.
CDisplay - Manga viewer. There's not that many specialized manga viewing programs anyway. Can read insipe zips and contain may features.
Spy Sweeper - Anti Spyware. Detect more than other programs
SpyGuard - Anti Spyware. Acts more like prevention.
MSN Plus! - MSN Messenger extension. Improves MSN Messenger.
CloneCD - CD burner. 100% perfect copies.
Daemon tools - CD image reader. Better than alcohol100% (less memory)
PowerISO - CD image reader. Needed for certain image formats
Metapad - Notepad. Improved notepad.
FRAPS - SS capture. To check FPS
ffdshow - Multipurpose video codecs. Better than the codec pack BS
Real alternative - Real video codec. used with MPC
QuickTime alternative - QuickTime video codec. used with MPC
VirtualDub - AVI editor. Free and efficient.
Wallpaper changer - wallpaper changer. Free and efficient.