Older computer for kids - recommendations??

I'm wanting to get an older iMac or Macbook for my kids. We homeschool, and they're getting old enough to use the computer safely (not damage it) for some of their schoolwork.  But my budget is very small (nil?).  I really can't see spending much more than $300 per computer.
I can find pre-intel macs for that price, but I'm thinking I want to get to get an early intel.  I'm needing help in determining what specs are most important for me to have.
I'm going to want to be sure that parental controls work well - I basically whitelist all websites that are OK for them to browse (they can browse more widely on other devices that I limit their time on) - I don't want to have to limit their time or monitor closely.  The browsers should be able to run current websites decently - a lot of what they'll do will be web-based.
For the one software (Rosetta Stone v4) I want to be sure to install, here are the specs that are required:
Intel Core™ Duo 1.33GHz or faster processor
1 GB of RAM or higher
600 MB free hard-drive space (per level)
CD or DVD drive for installation
1024 x 768 display resolution
1 available USB port (for a headset with microphone)
I have a late 2006 Macbook and an early 2009 iMac - the Macbook runs a bit slow and isn't able to upgrade to latest OS, but probably can do everything we need - it's just still the parents' workhorse.
My concern is that I want to be able to upgrade the OS as much as possible within that budget.  I tend to try to get all the software upgrades as soon as they're out (at least for free).
Suggestions?? Things to look out for??

I cannot help you on your decision.  Just wanted to make you aware of the following:
my budget is very small (nil?).  I really can't see spending much more than $300 per computer.
You should consider checking out Refurbished Mac Computer
We homeschool
You should check out Apple Store for Education homeschooling is included.
I tend to try to get all the software upgrades as soon as they're out (at least for free).
Apple software upgrades are not free. 
Apple software updates are FREE!

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