A lot of colleges sell Windows XP Pro for $10-$12 with the Microsoft education discount. That really isn't that big of a deal.

3 of my friends bought HP/Compaq laptops before they went to school last fall (Early/Mid August). All 3 of them were completely different models/designs. Around March, all 3 of their exhaust fans burnt out, within about a week of each other. One of them actually lost their processor fan shortly after too because it had to work harder to make up for the lack of an exhaust fan. Although the original manufacturers warranty covered the fan, HP/Compaq refused to let them replace the fans themselves, and they each had to mail their laptops back for about 10 days to 2 weeks while they replaced it and then shipped it back.

Even if the laptop is for general use and homework, I'd still avoid the celeron processor just because of the crummy battery life. It is definitely worth upgrading to a Mobile Pentium or Centrino (except I don't think Intel calls them that anymore...they were just a Mobile Pentium with a wireless card) to get that improved battery life. A friend of mine has an HP pavilion with a "centrino" processor and gets about 6-7 hrs off of a charge. I've never owned an AMD processor in a laptop, so I honestly wouldn't be able to give you any battery life information about that.

After the honor stories I witnessed my friends go through, I'm never buying an HP laptop (once I can get the money, a Mac Book sounds more like it). But don't let my bad opinion sway your decision.