I could never use Ubuntu as my main machine, since I'm so reliant on Windows apps like Office (back when I was in school) and now Zune, so I would install it on my ASUS EEE 1000HE (gdgt.com/asus/eee/pc/1000he/). Up to 9.10, I always felt that it ran a bit too sluggish for me to stick with it and I would eventually just go back to XP or 7. Right now I have the beta running on my netbook and it's runs a lot faster. I'd say that overall performance matches Windows 7, with exception of flash.
Until Google Chrome OS has an official release, I'll be running Ubuntu.
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Ubuntu 10.04 is THE OS for your netbook.
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