Taht one you posted there seems pretty damn good to me - all you need then is a few leads, an LCD screen, keyboard and a mouse and your away... But by then your over your £300 initial budget......
This will probably go up, but maybe something like this?
http://cgi.ebay.co.uk/ws/eBayISAPI.d...163929216&rd=1
Add a DVD RW (if you need one) and a monitor to it and your away....
To watch your DVD's on the TV tho you will need to get a graffix card like the GeForce MX440 like I posted above