If gaming isn't a big concern and you mainly plan to use it for what you mentioned above, I'd say the Dell would suffice. My sister has one and that's all she really does- it gets the job done. Now, if you game a bit, I'd start taking a look at something with at least a core i5 in it and a mobility radeon 5730.
The cheapest system with a 5730 here in the UK go for nearly 1,000 GBP, in contrast the 5650 is nearly half the price at £550 in the cheapest system the one i linked above.
Concidering the 5730 is only a slightly higher clocked 5650 it's not worth the investment in any scenario imo.
Choice of Laptop does depend on what the OP looks to play, if it's something light and casual like the Sims, a 5470 or something along the entry level lines would suit good and leave him some notes left in the wallet.
Geared89, have you checked out Dell's new Outlet store, they sell Refurbished laptops at a good price, i've seen Studio 17's on there for under 500 Pounds. And there's pages full of Inspiron's and Studio 15's