I just posted a note about a WinBook laptop that is available. It is more than your budget, but seems to be the best deal in laptops I have seen in some time. A friend of mine just got one so it should still be available.
http://www.winbook.com/si800tft.html
This is from that web page:
14.1" XGA Active Matrix,
Intel® Pentium® III Processor
800 MHz, DVD $1999
Thin (1.6" and Lightweight (7.1 lbs.)
14.1" XGA Active Matrix Color Display
64 MB SDRAM, upgrade to 256 MB
ATI 3D Mobility Graphics Accelerator
w/4 MB Integrated SDRAM
56k Capable v.90 Internal Fax/Modem
6 GB Ultra DMA Hard Drive
Lithium Ion Smart Battery
256k Integrated L2 cache On-chip
3.5" Floppy Disk Drive, built in
6x DVD-ROM drive, built-in, no need to swap
Integrated Dual-Button Touchpad
3-D PCI Audio
2x AGP Graphics Port
One-year Limited Extendable Warranty
Microsoft Windows 98 Second Edition - the home version of the world's favorite software, pre-installed
Free Internet Access pre-installed!