The laptop is dual core, which is a watered down version of core duo/c2d basically with half the cache and some other details but basically it's not as powerful - so I would recommend trying to find a C2D model around the same price...many of them are cheap especially those at around 1.6GHz which are still very powerful.
OS wise...it's running Vista Basic, which really has limited advantages over XP and since the model you linked to is only packed with 1GB ram I would suggest reverting back to XP (but check out the driver status with that first).
2 more things I would point out is the GMA 900 which is a woefully underpowered IGP and the low resolution for a 15" inch screen, although it is the standard I find something along the lines of 1440x900 to be better on that size. But that is your preference.
Personally, I would keep shopping, but it's up to you in the end.