Yes, it has wireless b/g, so of course you can connect at a wifi hotspot.
Now, the tougher thing to answer: Will it handle video editing? Yes, but at the same time, keep in mind it is not a "power-house" notebook, it will not be ideal for that usage. More ram, a faster CPU, discrete graphics card, and a larger hard drive would all be preferable, but again, for $400 - $450, you have to accept what it is, and what it is not.
I think that you definitley would want to increase the ram to 2gb, which is an inexpensive (and easy) upgrade, but aside from that, if you are on a budget, you could do far worse. Many of the sub-$500 notebooks out there still feature Celeron or Sempron CPUs, at least this gives you a modest, but decent dual core processor.
To bump up to a model with a discrete graphics card, 250gb or better hard drive, and faster CPU will generally jump you up into the $800+ price range. If you have the money, and want something configured better for video editing, that would be fine, but if you are on a tight budget, I think that this will do the job.
For many people, this would be a perfectly fine choice...it really is amazing how much notebook you can buy for $500...a very few short years ago, you couldn't even touch a notebook for that money, and many $1500 notebooks had less capability.