$1000 laptop – Does it exist?

My godaughter is heading off to college in the fall and she needs a laptop. Her father and I are starting a search for this laptop, but we are really strapped for cash. Our best estimate is that we will only have $1000 to spend. A bright side is that we can now get all the software we need at Educational pricing so we budgeted for that seperately. (Assumption is XP Pro and Office for starters.)

Any recomendations for hardware? Maybe a stripped model now and add prepherials throughout the year?

Suggestions?