Hmm... 300 USD a bit expensive. Considering the fact that it is used and the battery is probably also a little bit down the drain. 500 RAM is a LOT for that machine though. Usually a P3 laptop would have around 128 MB, so your friend must have stuck some fat RAM extension chip in there. 700 Mhz is nothing nowadays though. My guess is that the graphics card isn't larger than 16 MB either, possibly 8 MB.

How much are you willing to spend on a new computer? I think that's the big question.