Well you do know buying a cheapo laptop will give cheapo performance. It will work, yes. Don't know if I can go any further than that
My sister has a 700mhz iBook, but it's not running Jaguar, it's running 10.1 still, so I don't have first hand experience using it.
Now, If you have some additional cash, I'd give it a tad more RAM, and if you have more cash than that, go with the next model up, with the combo drive. Without a CD-R, you would need some kind of external drive, or network to transfer the files on, if you need to.
Also, I need to check to see if you woul support Quartz Extreme, because without it, it'll put a bigger load on the processer. Do you know GameMaster?