I had that exact computer when I was in college. Overall, it's a good machine, but I don't think it's fast enough to do much gaming. I was able to play Halo on it, but not much else. Not much on it can be upgraded, you could upgrade the OS to Leopard, but unless there is a feature that your cousin wants, it probably isn't necessary. Leopard ran slower than Tiger and Snow Leopard is incompatible with the PPC chipset.
Macs always have top-of-the line network hardware, so internet and downloading should be fine. The Airport Extreme card is the gold standard in wifi cards, so it'll be good.
If he's going to use it for school, I would replace NeoOffice with iWork though. NeoOffice is okay, but slow and has compatibility issue sometimes. iWork is Apple's office suite and it's much faster and far more powerful than NeoOffice or Microsoft Office. I think it costs $79 US.
For 270 pounds, I'd say that's a pretty good deal.
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