I just installed Easy Peasy Ubuntu - a version of ubuntu tailored towards netbooks - and boy does it rock. I've previously been running Ubuntu Jaunty but it really wasn't great. To be honest it wasn't even very good. It worked and I got by with it but it was quite laggy. In use it would stall for ten to twenty seconds at a time - and that was annoying - big time. This new Easy Peasy - based on the same Ubuntu Jaunty - doesn't seem to lag up at all. I mainly use my netbook for internet surfing and Easy Peasy does the trick. It loads quick. All my hardware - an Acer AspireOne - is detected - WiFi, Audio, Webcam and the browser loads quickly and works without lag - perfik.
I just hope they upgrade from jaunty to karmic when it comes out - back of the net.