I ended up picking up the ASUS Eee PC 1000HE netbook. (thanks for the advice Mithinco, Robert and evan.) I am loving it. However, so are my wife and kids.
I managed to wrestle it away and put Windows 7 RC on this morning and it’s all good. Seems to be performing quite well.
Now on to my laptop for Windows 7 64-bit this weekend. Good times!