Thats a good deal, but pretty old CPU's. The newer dual core CPU's out perform the older Xeons.
An example (yes, shameless) is one of our dual cores:
Intel E2180 Dual Core
1GB DDR2-667 RAM
250GB SATA-2 16MEG CACHE
1U Supermicro Server
$89/month + $28/month for cPanel
This dual core would have more horsepower than that older Xeon, unless for some reason you had a script that was very heavy on disk access.
or if you want to get right near that same price level, you can get something that is incredibly more powerful:
Intel C2Q Q9300 Quadcore, 1333Mhz FSB, 45nm
2GB DDR2-667 RAM
250GB SATA-2 16MEG CACHE
1U Supermicro Server
$129/month
^^ That is an amazing price though, and not even a special
