Hey Masi,
I just noticed this thread, and I was wondering if you've already purchased a laptop yet? If not, I would throw my hat into the ring and agree with Danoff.
Except I wouldn't recommend a netbook. I think right now, netbooks are badly overpriced for what they offer. However, I do agree that you would be much better off getting a cheap laptop, and using the rest of your funds to buy components for a decent budget desktop PC. If your total budget is around $1,000 (?) you could get a very decent laptop to watch videos, store music, surf, do homework, etc. for around $400--$450, and you could get a desktop with a good AMD processor for around $550-$600 (if you don't need a monitor).
This is assuming you could get Windows 7 for $30 as a student, which I think you still can.
For example, here is a list of components that would build you a very nice, multi-purpose computer for $534.94 including shipping:
Antec Sonata III case + 500 Watt 80 Plus certified Antec PSU: $109.98 including shipping:
http://www.newegg.com/Product/Product.aspx?Item=N82E16811129024
Sony CD/DVD drive: $27.99 free shipping:
http://www.newegg.com/Product/Product.aspx?Item=N82E16827118030
Samsung Spinpoint F3 500GB hard drive (best 500GB HDD going IMO, I've got one and it's very fast) $54.99 free shipping:
http://www.newegg.com/Product/Product.aspx?Item=N82E16822152181
Gigabyte AM3/DDR3 Mobo: $74.99+free shipping+$10 rebate
http://www.newegg.com/Product/Product.aspx?Item=N82E16813128392
G.Skill 2x2 GB DDR3 1600 RAM: $104.99+free shipping
http://www.newegg.com/Product/Product.aspx?Item=N82E16820231193
AMD Athlon IIx3 425 Triple Core Processor @ 2.7ghz + Sapphire HD 5670 Video Card: $161.98 free shipping
http://www.newegg.com/Product/ComboDealDetails.aspx?ItemList=Combo.335156
And this
Lenovo laptop is only $449 with free shipping, and it has a very nice dual core Intel with Windows 7 and a 250GB hard drive. It's the 32 bit version of Windows, but that should be fine.
This set of components would give you a very nice desktop computer, and a very good laptop that should play movies and videos well enough with it's integrated graphics. All for around $1,000

With the desktop, you could play most games at resolutions of up to 1650x1080 at medium to high settings, depending on the game. The graphics card is not the best, but it's one of ATI's newer directX11 cards, and it runs cool, and does reasonably well with games at lower resolutions. For about the same price, you could go with a HD 4850 graphics card for better performance with games. It runs hotter though, and would be about as high as I'd want to go with even a good 500 watt power supply. The triple core processor would be very quick, and would make multi-tasking a breeze. I recently upgraded from an Intel E5200 dual core to a core i5 750 quad core, and the difference is remarkable. Well worth the investment. All this is assuming you have a good HDTV/LCD monitor already. If you would also need to get a monitor, then I can't advise you to get a desktop + laptop on a $1,000 budget. Also, even if you are not very computer savvy, it's not that hard to build a PC. If you're not comfortable doing it, maybe you know someone that would just put the parts together for you. Once everything's in the case, just install the OS, and the drivers that come with the motherboard. It's super easy. If I can do it, anybody can

And I'd always recommend buying your own components rather than buying a pre-built HP or Dell. You get better parts for the money, it's easier to upgrade the computer when you want to, and it extends the life of your PC by being able to easily upgrade, rather than just scrapping your entire PC.
I can tell you this though. A couple of years ago, I got what was then a very "cutting edge" laptop from Dell for ~$1,000. Biggest mistake I ever made. With that kind of money, I could have built a "killer" desktop for around $600 and used the $400 left over to get a good laptop that would serve my needs well. I recently sold that Dell laptop for $300 and got a very good
Acer laptop for $367 including shipping a few weeks ago. I will never invest that much money into a laptop again, but that's just me.
I've now got a desktop with a core i5 750 @ 3.4ghz, a HD 5850 graphics card, 4GB of DDR3 RAM, a Corsair 650 TX power supply, and a Cooler Master Storm Sniper Case, and I got all of those items for less than what I spent on that laptop a couple years ago. The desktop I have now should be very good for at least a couple years. And then, I'll only maybe have to upgrade the graphics card and RAM.
Anyway, good luck with your purchase, and that's just my advice as to what you should do, because I've been in your shoes before, and I wouldn't want to see you make the same mistake I did.