If I upgrade the ram will I be able to do a little video editing
To be honest, SD (Standard Definition) - YES! If I could edit mini-DV footage on my old iBook 466Mhz G3, then there is no problem with that mini editing it. HD? Forgeddabouddit! Please do not confuse Ghz with computing power - a new quad-core mini will process things in no more than a tenth of the time, even though the CPU frequency is only 50% or so more. Also, 2GB is near or at the max RAM for that system. HD video is massive, and will eat that up in no time.
Having said all that, Snow leopard is a decent OS, and as long as you are legally getting the licences for that software, it is probably worth the $100 alone. If you already have the monitor, keyboard and mouse, I would think that you have an absolute steal on your hands. At the very least, it will allow you to understand what you need from a Mac and should you get the funds and urge to buy a new(er) one, you will know what to do...
Good luck! My introduction to the Mac was back in the dark days of 1997 when I bought a Powerbook 1400c from my Physics teacher. Like you, I didn't get the latest machine, but it was full of extra stuff, accessories and the like. Close to 10 Macs later, I think it was a good choice...
David