Yeah eepc's are a little better, but I think for a netbook that acer looks fine. They had a deal at BB today on an HP laptop (low end dual-core, 2gb ram, 120gb hdd, dvd burner and the works) and a printer for $279 today. Definitely a bargain. I wish they made a cheaper mac, they are nice, but just not at all worth the money imo (although it depends on the user).
Really I'd go for something a bit better than a netbook. You should be able to find an acer, perhaps open box at BB or something, for around 300-400 that should be comparable to the hp I specked above. That way you get the drive and the hdd, and a better proc w/ decent ram, so it can do a bit more than browsing but still is nice and cheap.