If you don't mind spending slightly more, I'd suggest getting the Acer AS1410-2285 for $399.
It has a dual core 1.2ghz processor, 2gb ram, 160gb HD, 11.6" screen, and Windows 7.
http://www.amazon.com/Acer-AS1410-22...8116530&sr=8-3
I don't have it yet, but from what I read, it's much faster than the Atom powered netbooks.