If you're running windows XP, 256MB of RAM just won't cut it anymore. I'm suffering under that mistake on my current work machine. Spend the extra to get 512 MB, you won't regret it.
Edit: Never mind, misread your post. The 256 is cache memory, which is good, and the 1GB is RAM which is double what I just suggested above, so you're in good shape.
As for price, a pound is going for a bit less than $3US these days, right? So this would be in the $500 range? Sounds fair to me. He got two? How much for shipping? :)
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