Buy New Netbook or upgrade old Laptop

Okay so I have this HP Pavilion DV5000 that my sister's friend gave me because she couldn't get it working. I found out that it had a corrupt hard drive that needed replacing. I am just about to start attending The Ohio State University and I need to decide whether or not to upgrade this laptop or just buy a new netbook.
Laptop specs:
Mobile AMD Sempron M3300 (2.0-GHz)
Seagate 4200.2 60gb (corrupt)
2x256mb RAM DDR-333
15" Screen
6.60 lbs
6V battery with less than an hour of life on each charge left

To upgrade the RAM to 2gb worth of DDR-333 would be $60 and to add a new hard drive of Ultra-ATA is ~160gb is $60

Now I was looking at the ASUS Eee PC 1005HA-V:
Intel Atom N270 Processor 1.6GHz
1GB DDR2 RAM, 1 x SODIMM Slot, 2GB Max; Wi-Fi 802.11 b/g/n
160GB SATA Hard Drive (5400 RPM)
Windows XP Home Operating System, Up to 8.5 Hours of Battery Life
10.1-inch WSVGA 1024x600 LCD Display
~$317

I am pulling this money from a loan from school. I have a powerful gaming desktop as well and the laptop would only be used for schoolwork and internet browsing. Portability is a factor as well. Which would be more worth it?

Go with the netbook....if you're using this mostly for school. They weigh less than most books - and you can do everything the same as a standard laptop.

For me it would be a no-brainer

You might even be able to sell your old laptop on ebay. Reformatting the drive and giving it a fresh install of windows is fairly painfree. If you found this forum, you will be able to find a walkthrough much easier.