As this seems to be a good discussion topic regarding these mini netbooks I thought I would sign up to register my interest.
Some bored Christmas holiday browsing on ebay brought up these laptops and after a bit of bidding I have managed to get myself one delivered for just under $100. Hopefully it will arrive in the next few weeks.
With regards to the flash playback, what version of flastlite have you managed to install, is it 3.0 or 3.1, as you have stated flash 8 compatability I would suspect it is flashlite 3.0?
I found the following topic on another forum regarding .cab files for flashlite 3.1, which I beleive has flash 9 support which may be more compatible with youtube, etc...
There are links on the thread to download the .cab files however if you do need these please let me know as I have downloaded them in case I need them.
The thread itself is regarding windows mobile, however I beleive this should also work ok on CE.
As you seem a lot more clued up regarding these things than I would it be possible for you to advise if it would be possible to install flastlite 3.1 on CE using these files?
I will be keeping my eye on this thread for all updates regarding these little laptops.