Yeah, I'd probably go with the AMD one as well. As smokester pointed out, the AMD video card looks to be better than the Intel one but both are integrated (shared memory vid cards) so powerhouse gaming is probably out. Also, in regards to the memory upgrade you're considering, make sure you find out the full arrangements of the DIMMS. I had a laptop with 2GB of ram and to upgrade it to 4GB, I had to remove the 2x1GB dimms and replace them with 2x2GB dimms. This arrangement sounds like (but it doesn't say on the web page) it's probably 1x1GB and 1x2GB, so you might get lucky and just have to add a 2GB dimm and "sacrifice" the 1GB.
Either way, they both sound like decent systems and a pretty decent price.