For what it is worth, the original poster has long ago done something with the netbook, so responding at this late date is pointless unless you wish to express your opinion, which you did.
I am of the exact opposite opinion. I bought a netbook a couple of years back for travel. Turned out to be totally useless. The screen is too small to do any route mapping and the keyboard was too tight.
Also, you must buy a USB external CD drive in order to create the restore disks for Windows 7 starter. That makes the cost more than a notebook.
I returned the netbook to Costco and bought a laptop, which I am happy with.
As far as getting your netbook to run XP goes, that is a crap shoot. It depends on what graphics and sound chips are onboard. IMO netbooks are a waste of money. If you notice, the manufacturers don't seem to be pushing them anymore either.