Yeah it is awesome! I got this laptop after using a 2.13ghz AMD Athlon XP desktop with an ATI Radeon 9600SE card (and 512mb ram) - it would play games, but not at any astounding resolutions or quality settings. I was SOOOOO impressed with how much graphics cards have improved, I never expected to be able to play games at 1920x1200 and I LOVE it!!!
cobra302 I'm not sure why you had to lower your settings to play HL2, perhaps you enabled antialiasing? If so, turn it off! It just makes things blurry if you play at native resolution! I play HL2 at absolute highest settings and 1920x1200 and it's smooth a great majority of the time.
Oblivion is certainly a beast. I tweaked the .ini file to better multithread (to take advantage of the dual core) and lowered the res to 1280x800, no AA, and medium-high settings. It still looks quite nice, and is definitely playable, but I will love to come back to Oblivion in 5-10 years when we will actually be able to play it with maxed settings on a high resolution screen... I can imagine it would be absolutely stunning on high settings!
Anyway yeah. It is definitely worth the extra money over the x1400. I haven't actually used an x1400 but from the specs and 3dmark scores it looks horrible compared to the 7900gs.
Oh, and I don't overclock either. If it were a desktop I would certainly buy some high quality fans and push it to its limit, but the laptop already gets warm and I do not want any possible heat damage.