Hi puma377, does that £299 laptop include VAT?
For £330 you can have a brand new, better-specced machine with 1-year's warranty - e.g. a HP 550 @ eBuyer click here.
However, if Vista isn't your thing, you're only option may be a refurbished/secondhand unit with XP.
You didn't say where you'll be getting the above from, but one of these places might net you a better deal: Bigpockets click here & MCScom click here (quoted prices excl VAT here), with many of the latter's laptops coming with a full 3-year Dell warranty. G