As more and more netbooks reach market it seems the price/performance is getting more and more appealing to consumers.
I remember when it was tough to find a good 7″ netbook for less than $400 and now on BestBuy.com you can pick up a 10″ MSI Win U100 for $349.
The U100 features the (what now seems to be standard in most netbooks) 1.6GHz Intel Atom processor along with 1GB of DDR2 memory, 120GB hard drive, Intel X3100 graphics, 1.3 megapixel webcam, media card reader, and 3 USB ports.
The netbook is a great size as well, 2.8 lbs and measures 0.7″ thick.
(by the way, this netbook comes with XP preinstalled).