If he's willing to squeeze it a bit, the Asus Eee PC 2G can be had for $250. Otherwise, you might be able to find a used or refurbished one for closer to the $200 price point.
You should subscribe to this forum, because there just so happens to be a real cheap one for sale a few threads down
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why not get the cheapest EEE and buy a 17 inch lcd? would suit her needs, and give her a warranty,...