FWIW I priced a new HP laptop a couple weeks ago at Circuit City -- 15.4" screen, 3 gigs RAM, 160 gig drive, CD/DVD-RW, Windows Vista Home Premium, etc.: ~$600 after rebates. Oh yeah, free multi-function printer as well (to be precise: choice of free printer, wireless cable router, or Norton anti-virus/etc.)...
Meanwhile, Microsoft has signed up more than twenty vendors in this "netbook" domain.
The device will be called the Acer Aspire One, as expected. It will come with an Intel Atom processor, and run Linpus Linux Lite, with Acer's own user interface. Other specs include: an 8GB solid-state drive, 512MB of RAM, 802.11 b/g WiFi, an 8.9-inch screen, and a standard 3-hour battery.
The Aspire One will be available beginning July 2 for $379. Later that month, a version running Windows XP Home Edition with an 80GB hard drive, and 1GB of RAM will be available, though the pricing details on that have yet to be ironed out.