We bought one for the wife for her to get her Facebook and Google Talk fix. The laptop is small enough to fit in her purse, yet large enough to be usable.
The device works pretty well for Firefox/Chrome browsers with multiple tabs open. Skype/Google Talk work quite well with video and audio being very clear. Movie playback using VLC/KMPlayer works very well too. MS Office(2003) fires up quickly and prints over the WiFi to my shared Laser printer flawlessly from anywhere around the house.
When playing CPU intensive movies such as H.264 Codec movies, the CPU overheats and if not cooled down, the laptop just turns off to prevent a burnout. Hence this rules out playing BDRips(2GB+ file sizes).
From the start, the mouse-buttons were very stiff and problematic to use. After 1.5 years, the power-button and the mouse-buttons gave up. I have to pay Rs. 1250/- at Global Technologies just to replace 2-3 tiny micro-switches.