I would save more of the basic cash, and get something like an IBM/Lenovo ThinkPad T43 or thereabouts. Make sure it has XP (not Vista). Then buy a docking station, a USB keyboard, a USB mouse, and a printer and you're very well set up. The ThinkPad will cost you around £300.
Then you'll need software - MS Office (Student Edition) is the most likely, but Open Office ain't bad - and it's free.
I still have the ThinkPad R31 I bought 4 years ago - it just keeps on working. I'd like something newer, but can't find an excuse to upgrade.
With the docking station etc, it's like a desktop when you're at home. That's a lot better than messing around with those little keyboards and funny tracker things.
I've heard good and bad about Dell, not much good about Toshiba, and hardly a bad word about ThinkPads.