Do you need to have a CD/DVD writer/player in the laptop? If not, then consider one of the new Netbooks. You could get a 'good' one for around �300 (�100 to spend on other things this Christmas - even an external CD/DVD for installing software and backing up?).
I can personally recommend the Advent 4211 from PC World (it has now been upgraded to a 160GB Hard Drive from the original 80GB) and you can install another 1GB main memory quite cheaply. This would have everything you need in a very portable package. The only thing is the battery life (you might find PC World giving a better one?).
If you spend a bit more, you can get the latest MSI Wind (on which the Advent is based) and they have upped the hard drive capacity and increased the battery life.
If I were to choose now, I would consider the new Samsung NC10 (looks VERY good) but Lenovo also have a new one at about �300 (may be available soon):-
http://www.dabs.com/productview.aspx?Quicklinx =5BTY&SearchType=1&SearchTerms=lenovo&PageMode =3&SearchKey=All&SearchMode=All&NavigationKey= 0
Make sure you get a 10.2" screen - very readable. Each of these has wireless, bluetooth, card reader and built-in webcam.
They run very cool and quiet. VERY portable - great for camera users.
Some people have even installed Vista and some have got Mac OS X running on it as a cheap version of a Mac Book (if you really want a challenge, you can play around with Linux).
Google away!