LG Optimus one has a decent spec.. it comes with 600 MHz ARM 11 processor, Adreno 200 GPU, Qualcomm MSM7227 chipset.. and it runs pretty decent
its gingerbread upgrade has been rolled out in India so u can upgrade it to 2.3
it has 3.2mp camera but it is pretty good.. I have taken a few pics from my friends mobile of a few slids and each and every word was easy to read. beside all it has good support in XDA, so u have pretty much options opened. within the range it has heighest ram and that will help you too.
In this forum, there are a lot of lg optimus one p500 users, you may easily confirm with them