Cheap laptop for old folks: recommendations?

Hey all,

I'm picking a computer for my grandparents (high 70s) and obviously I've never shopped before for this set of features. Specifically,

- not a netbook (they want a reasonable size screen, something like 15" )
- webcam for skype'ing
- $650 or less
- high reliability (actually, I want this one b/c if things break I'll be the one dealing with it)
- full-size keyboard with a pretty natural feel for my grandpa's big fingers

Neither performance nor mobility is a priority. It can be a bit heavy -- they won't be moving it much -- and I really don't care what the internal specs are. I probably prefer a dual core processor so that they won't freak out when Windows decides to run some background update and tie up 99% of the CPU for 10 minutes (I'm looking at you, svchost.exe).

Finally, I don't care about preloaded software at all, even OS.

Given all of this, I have 2 questions for all you folks:
1) If you have experience buying computers for pretty old, not computer-savvy at all people, are there obvious features I missed?
2) What's the best laptop out there for them?

I customized a Dell Inspiron on Dell's site and priced it at $489 with all standard features plus webcam, Core Duo, and the WLED screen. It seems to be a good choice.
3) Is there a reason I'm wrong to like it?
4) Is there something better? Maybe even some manufacturer that doesn't bundle Windows and allows me to save some money on that?

See, last time I bought a laptop for myself was back in 2005 and it was a tablet. Since then, I've mainly build and used my own desktops, so after 4 years I'm not even sure where to begin looking.

Thanks in advance for all your help.

Best.