I just bought my mom an Acer last week for her 60th b-day, and she's loved it so far. I got her the cheaper version though since all she needs it for is surfing and some minimal word processing (only $329 at Office Depot). Her's has a VGA port and I'm pretty sure the one you posted does too.
Yeah, I've had an Acer as well and I think they are a terrific value, they have some pretty good models out there and at prices that can't be beat. About the only feature I think that laptop is missing is bluetooth connectivity, but I guess a bluetooth dongle can be added later on for pretty cheap.