Would appreciate any help you techies could offer with buying a new laptop...

Requirements..
Work: coding/office/light photoshop, nothing too heavy
Music: Have ~ 300GB mp3s so want lots of storage
Movies: dvd's/divx & 720/1080p rips on the laptop screen and for connecting to a TV sometimes to watch on big screen.
Games: No

Here is what I'm thinking:

O/S: Linux/Win7
CPU: some cheap dual-core
Mem: 3GB should cover it?
HD: 500GB
Screen: 17" (imo 15" is too skimpy for movies)
Now do I need WLED vs XGA? is there a huge difference in quality for movies or anything else?
gfx: cheap Integrated for VGA out. Modern tv's can stream from Wireless lan right? or is it worth forking out for a dedicated gfx card so I have hdmi out?

dell have quoted me this sys for €500 inc.
Inspiron Notebook 1750 Intel® Pentium® Dual-Core Processor T4300 (2.1GHz, 800MHz, 1MB cache)
Genuine Windows® 7 Home Premium 64bit
17.3" WLED High Definition + (1600 x 900) TFT Display with TrueLife™
4096MB 800MHz Dual Channel DDR2 SDRAM [2x2048] 1
500GB (5400RPM) Serial ATA Hard Drive
Intel Integrated GMA 4500MHD (no HDMI out)
Dell Wireless 1397 Mini Card (802.11 b/g)

Any help/advice would be appreciated