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For internet and office you should be able to find something well under $500. Size is what will kill the price. 15.4 is a reasonable size, so if she/you can deal with that you can find a good deal. If I were you I would rule out Macs just because they are too expensive for what she needs.
I'm happy with my Compaq V2000 which I bought 3-4 years ago for around $400. It has been beat up between school, work, and daily usage but it has not given me any problems. The only thing I would change is the processor. I have an AMD Turion and it gets about 1:15 run time before the battery dies. I would suggest an Intel processor for better battery life. My laptop for work, which is more powerful (dual core Intel) gets around 3 hours before the battery is dead!
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"The Corvette took nearly 25 years to sell 500,000 units; the Z does it in fewer than 10."
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