yeah..ya really need to go to 512MB (hopefully this will be the minium spec. if they rev the mini sometime in the year.) and add a Superdrive..I think that adds another $100 or so.
This puts the minimum sensible config at $700.
I'd probably opt for an external FW drive instead of upgrading the internal to 80...since that's probably only a 4,200RPM 2.5" drive inside (drive specs are conspicuous by their absence on the website last time I looked!)
GFX chip is a Radeon 9200 chip with 32MB...not a bad card per se but hopefully gets rev'd to 64MB