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SL should be okay on it. I feel €400 is about €150 too much. Check eBay sales and such to see what they're going for these days. I would say that eBay will fetch slightly more than say a site like this, but overall, I think €400 is too much to pay.
 
I would also say $400 is a touch on the high side. unless the condition really is FANTASTIC.

An old laptop like that should be ok if your running SL and your other apps are also from the Snow Leopard / Leopard Time period.

From my experience Older machines run great with the software from their own time period.
When your trying to run the latest and greatest on a 5-6 year old computer is when the performance issues kick in.

So the question is are you happy running Old software, OS, iTunes, iPhoto, Mail, Safari etc etc . . . Or will you want the latest versions of everything to have all the new shiny features and keep up to date with your modern, multi-device syncing setup?

I believe that Laptop will run Lion but not M-Lion. However I would run SnowLeopard for better performance, as you suggest.
 
i dont believe any of apples plastic notebooks are worth buying. they were a mess.

I beg to differ. I just bought a white MacBook 5,2 earlier this week in great condition for $300. I upgraded to mountain lion put in 6gb of ram and installed an ssd and its actually quicker than my late 2011 iMac desktop. Just gotta keep your eye out for good deals and budget in some upgrades. Stock it was a tad slow but with extra ram and a quick hdd it's now a wonderful machine to use.
 
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