good deal? 2nd hand Inspiron mini 1011 in Rs 7k

D

I got a deal for this mini laptop. The seller said the hard disk is corrupt and need to be replaced. I personally checked the laptop with partitioning with gparted, then when trying to install windows 7 home premium, "windows 7 setup extracting files" stage becomes extremely slow( took 3 hrs for extracting 30%). So, what are the thing to check in this laptop? I'm going to try a live linux with this(dont have 32 bit linux at this time).

So, is it a good deal?
"2nd hand Inspiron mini 1011 @ Rs 7k + new HDD".

Replacing RAM in this laptop is little difficult too.

Also can anyone suggest me a hdd(80GB/120GB enough) for this laptop. I prefer flipkart, snapdeal, and ebay(not exactly, but).

This is for my friend, but I guess I have to be honest

Finding 80GB/120GB HDD would be very hard to find. I don't think if it comes. A 320GB HDD would at least cost you 4k. If the laptop's condition is good enough, then you can go ahead. New one comes for 18k IIRC ?

no more than 5k for that. Dell already announced that they won't be selling any netbooks.

and processor is quite old too. proved by the extremely slow unzip.