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I sell them at work and have gotten to play with a few different ones. The Lenovo S10e ($349 just finished a sale at $299) is a nice unit. There Asus ones arent bad either, I sell them all the time.
They are usable if you want something to check forums, email.. basically if you use your iphone or palm to do things online but wish you had a bigger keyboard and screen then they are great. Dont expect to do graphics design or play intensive games on it.
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