I don't play any real games, so the integrated video isn't bad for me. I think the only two games I've layed on this were pontifex (bridge building game) and simcity 3000. They both work fine.
I do use dual monitor output a lot though, and the d500 can handle it just fine.
Cpu: 1.3ghz p-m
ram: 512mb
hdd: hitachi 40gnx(i think) 40gb 5400rpm
I know enough about computers to say that the 515mb of ram I have most likely helps a lot. Most of the stuff I use (office apps like IE, outlook, word, powerpoint) do not run any slower than my desktop. In fact about 99% of the time my cpu would be at 600mhz (lowest that it'll go).
If anything, I'd say my hdd is the main bottleneck. Things would get extremely slow when I try loading apps (or anything with some amount of disk access) while I am transfering files to/file my hdd in the background.