You are right not to pay a lot of money for extras that you will never use.
However, I don't believe that has enough memory (oomph) to run Vista smoothly.
This is a better deal - with twice the memory.
http://direct.tesco.com/q/R.200-0124.aspx
You need 60gb hard drive, 1gb Ram, wifi enabled, 3 usb ports as minimum.
You should also consider the size of the screen - do you want it smaller so it is more portable, or larger? Mine is 15.4" - ideal as a desktop replacement and in the garden, but a bit too big to carry everywhere.
As you want to store photos, you should look for a card reader. But don't pass an otherwise ideal laptop up if it hasn't got one, because you can buy an external usb multi-reader for under �5.
Have a good look at what's available in the shops. If you can get a laptop running XP at a good price I would seriously consider it. XP will be good for a few years yet, and doesn't have the problems that Vista is experiencing.
If you want XP, 516 RAM will be fine.