Yeap, no more than $500.
I am typing in a 12" powerbook 1.5Ghz witch is almost identical in funcionality.
It is good for the internet, office, skype and those things. If you are going to school it will do just fine.
It is not good for gaming, for extensive video editing or after effects.
Logic will run there but not the latest version that just came out.
It has 32MB of Video ram.
If is in perfect conditions it will be an amazing secondary computer.
Again, I have 3 12" powerbook, I haven't update them in 2 years, I am running 10.4.11 and I only update quicktime and those sort of things and they are great.
I have mine, my mother has one and my girlfriend the other one.
Check the batery, I bet is already gone if it was never charged.