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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.
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Id buy that right now if I could, Amazon wont ship to canada for 'warranty' reasons and amazon.ca is still weak in the electronics area and doesn't offer that model.
Looks like I'll be going for a windows 7 setup, I'll wait for the first decent one with 2gb ram and an 11.6ish size screen, hopefully before the end of november or Ill bite the bullet and upgrade an xp one.
Thanks for the replies gents.