The popular Linux distribution Ubuntu has it latest Beta version released, version 9.04. This Beta is running fine on several Netbooks.
Brad Linder from Liliputing loaded it onto a 1GB USB flash drive using UNetbootin & did test it on his Eee PC 1000HE & noticed "all of the hardware just worked". Even the keyboard shortcuts for adjusting the volume and screen brightness did work fine on his Eee PC 1000HE.
The Ubuntu Mini Blog tested the Ubuntu 9.04 Beta onto another Netbook, the Dell Inspiron Mini 9.
Ubuntu Mini reports: "The Beta does not require any extra fixes or patches. Audio works out of the box (you just need to turn up the speaker volume) and there is no longer a drive mounting problem after a LiveUSB install. Installing Ubuntu Netbook Remix doesn't require adding any extra repositories or adding items to your start-up programs."