This is going on my netbook today [Asus Eee 1000H]. I have been testing out Windows 7 (for fun) and now it's time to get serious. I was thinking openSUSE, but after reading some of the compatibility issues, ubuntu for netbooks looks like the winner.
Ubuntu 9.04 Netbook Remix
Your new netbook operating system
UNR has been tested on the following popular models. You can test your netbook's compatibility by running UNR as a 'live' image on the flash drive before installation.
via ubuntu.com
Now I will have three machines on my desk that run three different operation systems: OSX, Windows Vista, Linux. I should get extra nerd points.
I'll post an update after the installation is complete.