That is not too bad of a price. The 1.6GHz Neo can edge out the N280 Atom when it comes to performance, not by much though. The HP dv2z was tested with the 1.6GHz Atom and it was able to get a PCMark05 score of around 2100, not that much higher than scores of 1700 from Atom N280 powered netbooks.
The real throttle here is the aged X1250 IGP solution. MSI should have gone with at least an ATI HD2000 series GPU as that would have been able to playback full 1080p videos (any of the ATI HD series can, they feature hardware acceleration for VC-1, h.264, and mpeg-2 playback) while not sucking on the battery.
The inclusion of Vista Home Premium means that people will be able to upgrade to Windows 7 Home Premium for free. I am not sure how Vista will run with the x1250 though. The x1270 in the Gateway netbook (which is essentially a x1250 running at a higher clock speed) struggled with Vista Home Basic so I can't imagine Home Premium running any better (especially only a slower IGP).
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