At $500 and not gaming there's a large selection of laptops you can get within your budget. If you're just downloading things and surfing the web, I'd say something like a Toshiba or even an HP would be ok can even use something like the AMD A6 APUs. Its not like movie watching requires you to have an i5 or anything. Today's market $500 USD can get you something like a quad core A6, 6 GB RAM, 750 HDD easily.
Downsides are at $500 you probably aren't gonna find any laptop with a 1080p screen. And because battery life is the "in thing" you won't find many non-U series Intel processors (means you won't hit 2.4 unless you are plugged in so it can turbo).
Heres some examples.
http
/www.newegg.com/Product/Product.aspx?Item=N82E16834314554...