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I have an Acer for €650,- that's about $1000,-. I'm pretty happy with it (it even plays Bioshock), but I would not recommend Vista. Sadly most laptops come standard with Vista, without the possibility to have XP. If you can I'd take XP.

Take at least Dual Core and 3GB (DDR2) internal memory.

Toshiba is also known to make good laptops (and Apple of course, but they're probably more expensive).