I find that hp deal not very good. Dell did the same deal with At&t with their mini for $99 with a 2-year contract.
Anyway, are you specifically looking for a laptop? Or would a Netbook do?
I also have the ASUS eeePC. The processor is kind of anemic, but with a little overclocking, and some mods to the BIOS, it's pretty speedy.
Keep in mind, that Netbooks don't have an optical drive.
If you are really looking for cheap, Dell will probably have an Inspiron Notebook on sale as they always do. Check http://www.slickdeals.net to find coupons.