The laptop spec is from the darkage (ha ha! - that would be the beginning of the 21st Century and with a more reliable/supported version of Windows than the current version). Possibly adequate for the usage you propose or you could select one of the upgrades.
Orange Broadband certainly has quite a bad name for service and reliability. Speed and capacity? - possibly adequate for the usage you propose.
Thus the options are:
Orange � �337.26 (+BT line rental) over 2 years for a possibly iffy internet connection + low-end laptop; or
Orange + (�20 to �200) for 'better' laptop; or
OBonio's alternative � �180 per year + �350 for blistering fast internet (if line quality allows and there is a cap of
2GB) + "good" laptop; or
Shop around for the laptop and connection that most meets your needs...
http://www.broadbandchoices.co.uk/orange-offer s-free-laptops-23072007.html