I just bought an HP Mini 1035, It's 10.2" is a little larger then most netbooks out there and the keyboard layout and keys are much better than the others. It came with:
Intel Atom 270
60GB SATA HDD
1GB RAM
I upgraded the RAM to 2GB, Inserted a 8GB SD Card and installed Ubuntu Netbook Remix Linux on the SD Card.
I then switched my primary drive to the SD card from BIOS and configured GRUB (The linux bootloader) to allow for windows xp booting.