To clarify, when I bought it, the thing is still called a laptop. Nowadays, it has a different, more popular name. A netbook. And I was one of the early adopter of netbook since I have the earliest version of EEEPC. The Asus 701 EEEPC. It looks crude I should say. Without the glossy screen, the multitouch pad, the colorful casing, who would wanna buy this thing these days. But it was a different story then.
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Anyway, back to the upgrade part. I've been using it just fine with its' 512MB ram and preinstalled Linux OS. I never really needed to upgrade it since it's been working perfectly as it is. However, as RAM prices drop significantly this couple of years, upgrading to 2gigs of ram looks even nicer. Also, I got myself a free windows XP Pro from the engineering department of the university. So upgrading the OS is also at virtually no cost at all.
I only needed a couple of hours, and a little patience; since I have gotten used to my god-dayuuum fast desktop. Upgrading to 2GB of ram really makes a big different on this little netbook. Since it has a slow processor, having a bigger workspace really helps speed up the processes. And I installed the lite version windows XP pro. Before installing, I removed all the unnecessary drivers and application like movie maker, file sharing, IM, media player etc. I have my desktop and my phone to handle my musics. That also makes the Xp more responsive and faster without all the bloatware.