A couple of weeks ago I bought an Asus EeePC http://www.eeepc.asus.com
What a great gadget! I wanted one when they first came out with a custom version of Linux last fall, but I held off. However, when a version with XP pre-installed became available, the EeePC went from an amazingly cute "geek toy", to a useful tool. Yes it's under-powered by the standards of today's full size/full price "fire breathing" dual-core monsters. It's STARVED for storage space, as well. A 28 dollar 8GB SDHC card from New Egg fixed that. So there are limitations. But it can do more than 90 percent of what I ask of a computer. It even works well at capturing video (from the built-in webcam) at 30fps (using Windows Movie Maker).
More on my experiences later with this wonderful gadget, er...useful tool.