There are loads of good laptops out there for that kind of budget as even these seem to be coming down in price. If gaming is never going to be an issue you may want to look at one of the widescreen versions on offer - check out PC World - with a Celeron cpu which will enhance your daughters movie watching experience whilst staying 'In Budget'.
There's nothing wrong with the Dell system at all. In fact my friend - a policeman!!!! - has just bought one for his daughter for exactly the same reason and she is happy as the proverbial.
If your daughter is going to listen to music and watch movies then you will need to budget for a set of speakers as those on laptops are tinny at best. Powered - plug into the mains - are generally better as they have their own amplifier built in.