You won't get anything decent for that much money, I can almost guarentee that.
You can try http://craigslist.org/ and search in your area for someone trying to get rid of their old laptop for that. But I still highly doubt that anything good will come out of it. (Might get a laptop that can only run Win95 or 98 out of it.)
Tell her to up her minimum by 50-100 bucks and she should be able to get into a P2 or maybe a P3 and she'll have a servicable web surfer-note taker type of machine.
See if there is a copy of "Computer Shopper" at a local book store. Very good prices. You'll find stuff.
Also check with stand along sellers (look in a phone book and ask). Sometimes they have old lap tops around they thnk will never sell, or ones with deffects (like some screwed up pixels or USB ports that don't work).
You really can't get a decent computer for that much, much less a laptop. Heck, that's about enough to buy XP.
Im currently rollin a fully loaded Macbook Pro, but that's cause I do video editing on the go as well. It really comes down to what she wants to do with the notebook. Is it a notetaker? Does she want to just get her email? Does she need it to be wireless enabled? I'm a certified Apple Sales Professional so I could talk her into getting a macbook in under 2 minutes, lol, but that wouldn't help because shes definately lookin for something under 200. Which is crazy by the way, I wish you an extreme amount of luck. Like colossus72 said, looking around locally for an older machine will get you your basic web server and note taker on the go.
What? Don't you have used laptops in wonderland? I recently bought a PIII 600Mhz/128Mb laptop for 120€ This laptop does everything I need, I can listen to music, surf the web and watch movies with it.
onepoint...i felt for ya so i started looking. this is actually a pretty good deal and will do everything she needs for $229 including 60 day warranty. it comes with a great software bundle. my buddie's girl has one of these and loves it granted she didn't get it from here.