Girom, welcome to the windows 7 forums.
Good-Cheap-fast. Not much chance to get a laptop that will not break when you "accidently drop it" for this price range. Your out of luck getting a warantee for $100 for two years. Most companies will not give you a warantee after your original warantee is up and if they did, you could buy a new machine for the price.
All in all, from your description of what you want for under $500, no can do..