After installing Debian Squeeze 6.0, this netbook works out of the box with all of its accesories except for the internal microphone. Fixing the internal mix is straight forward, you just need to upgrade the kernel (no big deal) and install pulseaudio. Instructions below.
Performance is greatly-increased in comparison with the original windows 7 that comes with the laptop.
Installing Fedora 16 KDE Spin 32bits is very straight-forward. Battery life, however, isn't that great unless you do a few tweaks (Jupiter's power management tool is a good starting point, followed by using hdparm to ensure the hard drive spins down after a period of time).
It's also a good idea to move the task manager bar to the left edge of the screen. This way you'll have more working space. 16:9 screens are a ridiculous idea for computers unless all you do with them is watch movies anyway.
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