The Asus EEE PC is a UMPC (ultra mobile portable computer) which is small enough to fit in a ladies handbag.
It runs on Linux but its easy to use. Some of the things that you can do is surf the internet, watch streaming videos, internet chat, create and edit documents, record videos, play music and loads of others.
In Singapore, its costs about $600 making this one of the most affordable UMPC in current history.
Read up more about it in my blog : rinaz.net/2008/01/eee-pc/