Ubuntu (eeebuntu 8.04 hardy heron) installed in about ten-fifteen minutes.
There is a tool that can be run in windows or linux called unetbootin which enables you to create a bootable usb stick with a nice easy to use gui (from an iso or installation cd). It supports several distros too.
I then spent a few hours getting the hardware working as it should.
Everything now works perfectly. And after following lozisungs linux internet sharing tutorial that works too.
Found a script towards the end of the driver/software installation called RiceeeTweak.sh which runs all of the installations needed in around twenty mins (it even makes the hot keys work). Although it was quite annoying i didn't find the script at first i've learnt loads about editing files and using the terminal so i'm glad i didn't find it first.
There are some additional tweaks needed which are not in the script which are to get removable media to mount and to speed up the boot time but these are very basic and the tutorials available are very easy to follow.
Anyone with an Eeepc should seriously consider ubuntu as i've tried a lot of OS's and this is the one i'm keeping. It was a toss up between ubuntu and xp but xp is not as responsive as ubuntu imho.
I also now have compiz running (enhanced desktop stuff) and if i get the chance i'll post a video of it in action. I didn't think it would work so well on the Eeepc.