You'll be fine with that video card. Looks like a pretty good deal, but a few things you can fix.
-Drop the carrying case and pick up one on your own since Dell is probably charging a premium on it.
-Drop it down to the minimum amount of RAM and upgrade to 2GB (2x1GB) on your own if you want to game with Vista. Edit: Apparently 1GB is the lowest amount - suggestion still holds.
-Don't get the SoundBlaster stuff. It is just software emulation and not worth the money.
-If you don't need Bluetooth, don't bother.
-I'd get a processor with a 667MHz FSB, it will be a little faster. Edit: Though, I don't know if it will be worth $200.
-Search hot deal websites to see if there are any specials running with Dell to see if you can save some more money.
-Pay with a credit card that doubles warranties, so that 1 year warranty will turn into a 2 year warranty (1 year through Dell, 1 year through the CC company)
Also look into the Dell Outlet. You could probably find a similarly configured (or nicer) for less. If you go through the Dell Outlet, a CC that doubles warranties won't double the warranty since the outlet is considered "refurbished" (returned - new, returned - used for a day, returned - broken and then repaired, etc).
Edit:
If you already have the machine in your sig (which will do better than this laptop), why not get something lighter and more portable for work activities and use the desktop to game?