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You'd probably be happy with the x120e (12" and benches better than the ION 2 platform) or an Edge E420s. If you can swing an extra $200 you can get a T510 with an i7 and Nvidia NVS 4200.
If you want something really portable that can still do light gaming get the x120e. Yes I know I preach this thing every time someone asks about laptops but it's a really great form factor with a fantastic keyboard, and it comes with HDMI out now.
Dell's consumer-grade products are flax but their business-class ones are
fantastic. Check out the SMB Latitude line, they're a LOT better than the creaky rubbish they push to home users.
http://www.dell.com/us/business/p/latitude-laptops
If you don't mind the brand stigma (and setting it up with a student discount copy of Win7), you can get last year's MacBook for $850.
http://store.apple.com/us/product/FC516 ... Tg0NzA2MTY
The OEM outlets usually have some pretty good deals. They stock both factory certified refurbs and customer returns. Best part? All the hardware currently exists and is sitting in a warehouse ready and waiting for them to slap on a shipping sticker.

Either it's there or it isn't. No wishy-washy backorder bullflax. They're first-come first-serve, so if you see one you like you've got to jump on it.
http://www.dell.com/content/segmenter.a ... l=en&s=dfo
http://outlet.lenovo.com/
Dell Financial Services sells off-lease corporate hardware at decent prices. If you start with a good base and think of it like a barebones kit there's some good buys hidden in there. For example,
here's a 15" Precision M4300 with a 2.4 ghz Core 2 Duo, 256mb Quadro FX 360, 120 gig hard drive, and 2 gigs of RAM for around $450. That leaves plenty of room in your budget for
a bigger hard drive (even an SSD),
more RAM, and a copy of Win7.
e:
DELL OUTLET. NOW.
http://outlet.us.dell.com/ARBOnlineSale ... l=en&s=dfb
Latitude E6510
Processor: Intel Core i7-620M Processor (4M Cache, 2.66 GHz)
Genuine Windows 7 Professional
Latitude E6510 Laptop
320 GB SATA Hard Drive (5400 RPM)
4 GB DDR3 SDRAM 1066MHz (2 DIMMs)
8X DVD +/- RW Drive
512MB NVIDIA NVS 3100M
$810.