Its a good spec for video work - who's the company ??
I've used a T7200 laptop with 1Gig of memory and a 5400rpm SATA drive to edit HDV footage in Premiere Pro CS3 and it flies with just a single video track, but is still usable doing 2 camera multicam in HD.
A 5400 drive is fine for capture and basic editing as long as you keep it defragmented. A 7200rpm drive is going to be less trouble, but the best option for video work would be a second internal drive dedicated to video data only, or an external SATA or Firewire drive (USB 2.00 at a pinch), but you'd need mains power for the external drive.
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