Ubuntu on EeePC is fairly slick
The instructions were pretty easy to follow (admittedly, after 10 years, you learn where the awkward spots are in linux installations) and the result is a tiny, snappy, fully-working Ubuntu machine, complete with webcam and wifi. The only bit I haven’t got working yet is microphone input to Skype; my bet is that it’s a simple mixer setting.
Update: This page has instructions on how to get the microphone working. The key piece of information is the “Capture Switch” settings.