I think you'd be much better off buying a current 2GHz MacBook refurbished for $999. You still get iLife '08 when you buy refurbished folks.
Er... I don't think that's always the case. Maybe sometimes you do, but refurb machines are ALWAYS advertised with "software that original shipped" on the machine... I've bought refurb hardware before and it had out of date software on it (got 10.3 on a machine after 10.4 was out).
Also, am I the only one who is still getting the "we'll be back soon" message for the store?