Take $700,000, and invest it in a massive portfolio of various stocks, bonds, accounts, etc. around the world (and hope that I can make some decent interest, and on this alone, I'll never have to worry about money ever again).
That effectively leaves me $300,000 to play with.
give $20,000 to my parents, a few thousand to some close friends.
Pay off my car (I'll keep my Accord for now), and any debts I may have.
Buy a Mac G4, Canon XL1 Digital Video Camera, capturing deck, a film scanner, high quality printer, get copies of Pro Tools and Final Cut Pro 2 (basically set up a pretty state-of-the-art multimedia workstation/Video editing station/Recording studio/Print shop)... as well as probably a new guitar, and new home theatre system.
Move out. Purchase a fairly nice apartment somewhere.
Continue to work on my endless creative projects, now better equipped to do so, and continue life, working, etc., never again having to feel pressure to make excessive amounts of money or worry about being financailly stable. Make occaisional small donations to charities (a few hundred dollars here and there), and every once in awhile leave a particularly nice/cool waiter or waitresses a 1000% tip.
Oh, and perhaps take $10,000 and spend a few months in europe (Hey, Orchid? Hearse? I'm coming to visit!). Pay expenses to fly Lina and Duvall into Toronto to meet up with Satori and hang out with those guys for a week or two...
Now... if I had TEN Million dollars...