That seems like a nice deal! I wouldn't upgrade the ram via Dell; you can probably get a stick of memory from Crucial much cheaper. That's how they getcha

Is it SDR or DDR? I have a cdrw/dvd combo drive, and I practically never use it. I have a larger hdd tho so I just carry 5-6 divx movies with me when I travel. On battery, you can actually watch the battery life go away when the optical drive is spinning
What video card does it use? Does it have dual display capability?
Also be aware that if you are connecting to a network with a domain that XP Home won't do.