Honestly, if all you need Microsoft for is for basic MS Office, then spare yourself the hassle of bogging down your system with a Windows partition
and buy MS Office for Mac 2004 or wait for 2007.
MS Office 2007 will be Universal Binary and run MUCH faster on your new machine.
You can also free up around 5 GB's of HD space by running a lean custom
install from your OS discs BEFORE you set up your system.
RE-installing OS X provides a custom install option that allows you to de-select all the unnecessary printer drivers, language translators you won't use, demo applications, GarageBand demo songs, and so on.
You can also find iDVD Themes Folder once you up an running and trash
that too freeing up another large chunk of wasted space. I think that's about 1.6 GB+/-
Later on, go for a My Book Pro external HD for larger and faster storage needs.
Your standard OS install includes 30 day trials of MS Office for Mac and iWork. There is also TextEdit in your Applications folder that provides all you really need for writing and reading most documents.
Once you draft a report in TextEdit, simply print to your Documents Folder
as a pdf. or send it to your printer.
Depending on your school's buying power, you should be able to buy The education version of MS Office for Mac, for $50-99.00
If you are not under a pressing deadline to buy your MacBook before
returning to classes, I would try to save up just a bit more to make sure you have the best system you can afford.
Try to go for at least the 2.0 GHz model if at all possible.
There's also a 50/50 chance that your refurb may ship with extra
goodness like additional RAM or a larger HD.
I would not bother buying additional RAM until you see what ships with your machine, but then you'll want at least 1 GB installed and preferably 2 GB.
I found a real nice all leather bag for $36.00.
You'll also want a good stack of blank CDs or DVDs.
Always make certain that any media you insert into your
disc drive is spotless.
I've now purchased 3 Apple laptops over the last 18 months for my daughters and all of them have been flawless. 1 Refurbished 1.33 GHz 12" iBook G4, 1 MacBook Core Duo 2.0 GHz and one MacBook C2D 2.0 GHz with 2 GB RAM.