OK, that's more helpful for us. The only thing you will have trouble with on both systems, is gaming. I know you said only mild gaming, but what exactly do you mean? Do you mean World of Warcraft style or Roller Coaster Tycoon style? I know I'm asking a lot of questions, but it'll help us give you the best recommendation we can.
Devrathnd, it's because we need what the laptop configurations actually are, and what you're using them for to make an informed suggestion. "Mild" gaming can mean a things like World of Warcraft or Roller Coaster Tycoon. They have different requirements for computers. It's just that the more information we have, the easier it is for us to make a decision on what you need. I know you may not know about computers as much, but even copy pasting the computer configurations and then saying what games you want to play is helpful.
I apologize for having a life outside of the forums. I don't know much about the two games you listed. If they are older games, then integrated should be able to handle them. Either way, the 1420 would be better off than the Compaq for 2 reasons 1) newer CPU that can be upgraded should you feel the need and 2) While Dell's support isn't the best, it's better than Compaq's.
There was an Asus model that I thought would fit in your price range, but I can't seem to find it. You can try HP's DV6500t, but it's more than the Dell.
If you like the Dell, go onto google and search "Dell coupons". You can usually find some good ones that will cut your cost down.
Yeah, I don't think graphics will be a problem. If you're only running DOS for an operating system, it's not going to be the latest games. So yeah, the Dell should be fine. As LostandWandering said, see if you can find coupons and stuff. And delete all the trial software the instant you receive your laptop