Jeff,
You actually have a lot of choices. If, by powered speakers, you are referring to the typical PC speakers which come bundled with PCs, I'd forget them. They usually sound awful.
What I do is run the LINE OUT from my computer through a passive volume control and into an external hifi amplifier, then on to some decent home speakers. See my setup, below:
You can see the speakers are pretty far away from the monitor, so their magnetic fields don't bother the monitor (that's not a problem anyway if you have a flat screen, such as a laptop PC). You may be able to get by without the external volume control box by just using the built-in volume control in the PC. However, the gain of an external amplifier is often high enough that you have to keep the PC turned way down for a comfortable listening level, and the residual noise of the sound card becomes noticable, too. That's why I use the volume control (but you may not need it).
Now for a shameless plug: My company makes a plug-in amplifier card for the PC. You just pop it into an open slot in the PC, then run a jumper (provided) from the sound card LINE OUT to the amp card input, then hook up your speakers. It's easy, and it sounds really good.
http://www.tripath.com/html/tio_home.htm
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