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ACER?

GMA900 means you won't be able to run the Aero interface in Vista.

Cheap Acer's are just that: cheap. Build quality is so-so, check the battery capacity as well. You can at most upgrade to a Pentium M, whereas if you found a notebook using the Celeron M 4xx series (i.e. 945 chipset) you could add a Core Solo or Core Duo later.

Personally, at this crucial transitioning point in mobile technology, I don't recommend purchasing "old" technology. Forget Dothan and previous, look into Napa-based products like the Celeron M 4xx, Core Solo, or Core Duo. Or of course AMD Turion 64 X2.

Otherwise, yes the notebook is okay for a cheap notebook.
 
I bought a cheap Acer for my father in law this past Christmas. Wasn't impressed with the build quality and the speed was dreadful. The 4200RPM drive and 256MB RAM really hold it back. The battery barely last over an hour (but it has a 4 cell and the one you listed has a 6 cell). If you can upgrade the HD speed to 5400RPM and increase the memory to at least 512MB it should be a decent machine for surfing the web and very simple office tasks. I wouldn't want to use it to edit photos or work on large spreadsheets and definitely no gaming other than solitaire.
 
I have an acer travelmate 8100 and it's great. It's not a "cheap" model though, coming in at $1200 after an instant $400 off.
 
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