If you are already blowing 7 bills on a laptop, don't settle for a 1.6Ghz celly. If we were talking 4-500 bucks I'd say go for it, its got what you need for what you need it to do, but for 1-200 more you can get a machine you will enjoy using a lot more.
for about 200 bucks more than 700, you can get a nice Core Duo 6400 with the high resolution gloss display, which is genuinely impressive to me even after having it for months. It's your call, the 700$ hp will get the job done fairly easily for what you want it to do, but the extra 1 or 2 hundred bucks is basically getting you a porsche 911 instead of a ford taurus.