[BDBohnzie]

I have a MSI Wind 10 inch netbook, and it pretty much does what you are looking to do. And while it takes some adjusting, typing on it isn't too bad. Mine has Wireless-N and bluetooth, and both work flawlessly. I wanted something I could throw in my bag and take everywhere with me, and the netbook is it. I don't do much more than surf the web and watch videos on it, and wouldn't recommend doing much more than that on it. However, there are plenty of 13-15 inch laptops in your price range that will allow you to do more...

Skip the Celeron. In your price range, there is no reason you can't get a Core 2 Duo or AMD equivalent.

2GB of Ram will be adequate with Vista and what you are trying to do. I've been running Vista Business at work for almost 18 months, and it's been fine. I've noticed a lot of the newer laptops in your budget range are coming with 64 bit Operating Systems, so I'd make sure your laptop's Ram can be expanded.

I doubled the memory in my work desktop a few months ago (more Photoshop and Illustrator usage was hammering my system), but before then, I was able to do everything you are asking to do with 2GB and Vista.

Check out Dell's outlet. For my company, I've ordered several desktops and laptops from there and they've been great. Just be sure to uncheck the Scratch &Dent and Off-Lease boxes when searching their Outlet. The other nice thing about the Outlet (as opposed to buying new from Dell) is wait time. If you order new from Dell, they were about 3 weeks build time before shipping. Outlet will be in the mail to you the next day, since all they have to do is find your system, slap a UPS sticker on it and send it out the door.

Here are examples of what they have:
$499: Inspiron 1545 - 32 bit Vista Home Premium, Intel Core 2 Duo T6400, 3 GB RAM, 320 GB Hard Drive, DVDRW, 6 Cell Battery, Wireless-N (System Identifier: ZRCT8W6R)

$569: Inspiron 1545 - 64 bit Vista Home Premium, Intel Core 2 Duo T6400, 4 GB RAM, 320 GB Hard Drive, DVDRW, 6 Cell Battery, Wireless-G (System Identifier: Z2RG8FVR)

$609: Inspiron 1545 - 32 bit Vista Home Premium, Intel Core 2 Duo T6400, 4 GB RAM, 320 GB Hard Drive, DVDRW, 9 Cell Battery, Wireless-N, Bluetooth (System Identifier: DDAK8W83)