That's about what I paid for my Dell laptop including an 8GB Crucial memory upgrade purchased separately and Dell will come to my house and fix it free for the next 3 years.
Agreed on the drive space. I wanted Win7 so I bought a 250GB SSD drive as well (not included in my statement above) and installed Win7 on that. If I ever have a problem I can stick the original drive from Dell back in and revert to the original configuration for Dell to troubleshoot. Its virtually empty as all files in our household are supposed to be on a NAS (if I could just get my daughter to learn that...)
That $529 deal in Larry's link looks like a lot better buy to me. If you chat with Dell Sales, they'll probably beat the advertised prices. My dad and I were both offered about a 10% discount on our machines.