Baldur
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Go for it, for what you intend to do it will do what you want, step up to something bigger when you have the experience of this one and by that time you will know what you want. I stepped up from a dual 800 G4 to a dual 1.8 G5 (yep I know it's faster than the 1.6 single he's looking at) a few years ago, and with memory as cheap as it is and you can buy used memory for the G5 for peanuts.
Anyway, for 500 bucks take the deal that is in front of you rather than to look for something you can't afford. I still have the G5 and although it won't blow your socks off it will still perform and I can deliver images that I work on in 16 bits from the 1Ds Mark II without going nuts. I also have a MacBook Pro 2.33, both have 2 gigs of RAM and there isn't a huge difference between them, a single processor will be slower but it's still a Mac, and I'll work on a slow Mac rather than any PC any day.
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