Laptop buying advice

Hi /comp/.

I'm looking for a really cheap laptop and was wondering if you could advise me. It'll mainly be used for word processing, possibly some Photoshop, and watching anime/films etc (so the ability to play H.264 encoded files is preferred).

My budget is small... possibly around $500 tops, preferably less. What kind of spec would I need for those requirements, and what can I expect to get with that money?

I'm guessing I might have to go the ebay route (but would rather not if possible). Do you have any tips on what to get or what to avoid?

Thanks in advance.

$500 won't get you a decent new laptop. If you're keen to avoid eBay (probably wise, since eBay is full of lying bastards and con artists in the desirable tech items stakes), look for a company that sells used/refurbished laptops (like ex-business models and such). You should be able to find a late P3/early P4 era laptop that will suit your requirements and come in under $500. Look for a good brand like Toshiba, IBM, etc.

http://www.laptopcloseout.com/
http://www.usanotebook.com/
http://www.laptopoutlet.com/

All these sites have a few sub-$500 refurbished laptops, typically P3s in the 1200MHz range. Stick Windows 2000 on them instead of XP for better performance, or maybe another stick of memory, and you've got yourself a nice usable laptop right there.