You could also consider getting a barebones laptop chassis and adding in the components yourself. We all know that saves a lot of money for desktops, so I'm guessing it would be similar with laptops.
I am still using the Dell Latitude D600 laptop that I got at the ISTS competition last year. It's a POS despite the good specs (when I got it), as the construction is cheap and flimsy, the cooling is not very impressive and the bottom gets incredibly hot. I certainly wouldn't have bought it myself, especially since it normally costed over $3000 at the time. The most annoying thing is that the 1700mhz Pentium M CPU seems to throttle down to 600mhz whenever I run any 3D accelerated game for about ten minutes and causes everything to become very choppy all of a sudden (can't play much with the cut down 64-bit Radeon 9000 anyway, but still). I've tried just about everything; don't know if it is overheating, a driver bug or what, but I have basically given up on it at this point. No dead pixels, but the screen has a non-uniform backlight problem. The battery life is actually quite long at nearly four hours, but I basically never use it on battery, so that's a moot point for me.
It also came with a strange looking...thing...that I still haven't been able to figure out the purpose of. It's something like a port replicator but much bigger and heavier, and one of those was already included anyway, so I have no idea what this could be other than a very large paperweight. Sort of looks like the automatic feeders on some printers. The laptop fits neatly on top of it, but it doesn't provide any extra functionality. Only Dell knows what this is for.
Anyway, I will probably continue putting my money into the desktop and use this crappy laptop for school/work related tasks only.
. It'd be nice if it had a higher resolution + bigger screen size (Although I can settle for 1024x768 or so).
I find that just about all modern laptop LCDs have way too high resolutions for their size, making text look really tiny and hard to read. This one has a 14" display and a native resolution of 1400x1050, and I am normally used to my desktop 20" viewable CRT at 1280x960. You should still be able to find older ones with 1024x768 though.