That's a netbook, not really a notebook.
What sort of applications are you planning on running. If all you want is music and the net, then you can't really go wrong. When you throw in other stuff though, that machine will quickly slow down.
Your etc etc worries me. The only time I would ever recommend a netbook like that, is if you already have a decent laptop, but want something small + good battery life that you can take everywhere, and don't mind breaking or losing.
Put another way, I would never buy a netbook as a primary machine. You will get very frustrated very quickly once the excitement of a new toy wears off.