Want to be spending over $150 dollars on a good g/c tbh. Otherwise it will just be outdated very quickly!
If available a good LAPTOP one is a lot more. But rare chance of a slot in it.
Shared means that the card is built directly into the board, and more importantly, shares RAM with the system. Further, intel doesn't make very good graphics cards.
A Core 2 processor is a very nice processor, 1GB of RAM is great, 120GB Harddrive is pretty large for a notebook drive, etc.
In other words, the system looks great except for the crappy video card. What you want for a video card will probably be either nVidia or ATI, and you want to make sure it's a dedicated card. As long as it's a dedicated card, it's almost guarenteed to be decent.
So if you don't play graphics-intensive games, it's fine, but if you do, go with an ATI or nVidia, something with dedicated memory.