My first car, which I am currently driving, is practically the same as that: A $500 AT Altima bought from a friend's brother.
You don't really need something good for your first car, you haven't developed any standards yet. My car takes 11 seconds to get to 60 mph, and it feels rather fast. I've made it handle amusingly with high tyre pressure and deactivated ABS (exactly as fun and unsafe as it sounds). And, best of all, I can treat it however I please. As a $500 car, it demands pretty much nothing from you, other than the occasional oil change. It will both motivate and enable you to save for a higher-class car (unless your dream car is a Volvo 240, in which case I suggest a Volvo 240).
It is a fine, fine automobile. Go for the Accord.