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I recently bought an Asus EeePc 701 (one of the earliest models and now discontinued), which was being sold at the bargain price of £99. It has an 8 Gb solid-state disk and the fan is barely audible, so it is quiet in use. Although small (7"), the screen is very crisp and legible. That model comes with Xandros Linux preloaded; I dumped it in favour of Eeebuntu, which is great, and shortly to be upgraded to version 4.
I mainly use mine plugged into an external monitor and with a wireless keyboard and mouse, for word-processing (because it's so quiet), but now and then I take it out and about as well. FBreader is reckoned to be the best Linux ebook software, though I don't use it myself.
If you can find a 701 at sale price, it might very well fit the bill.
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