This Acer Aspire is a good choicehttp://www.newegg.ca/Product/Product.aspx?Item=N82E16834115900CVF
However,you can't find a notebook with excellent audio quality in your price range(even many high-end models don't have a good audio quality)
Hm, the CPU is too high. A simple 2.0 GHz is enough. And the memory, too much... I'd prefer DDR2.
I guess a 14" would be just fine---I don't mind the resolution that will come with it.