I got my Asus pretty cheap. lol. Probably coz I bought it in HK where every gadget possible in the universe is cheap as hell. I'm actually going back in a few months to buy myself a DSLR camera. I got a free upgrade to 2GB then paid for another upgrade to 3GB. Should have done something about the hard drive though. But it's fine. All I really need is my Photoshop and a good media player and I'm good.
If you're gonna use it as a primary computer, it's better to spend a little more. If you're just gonna use it for the internet, you can already buy the one with the specs that you gave. Whatever you do, don't settle for anything just coz it's cheap. It's gonna kill you in the long run. Acer laptops are probably the cheapest around but I've got friends who had to take them back to the store after 2 to 3 months coz their motherboard was already broken. And motherboards aren't cheap. Of course, there is a one-year warranty but once that expires and your computer fucks up, you're screwed and you'll end up paying a lot more.