Unfortunately it's wasn't free - but it did work with my wifi but needed me to install the relevant wifi driver under ndisswrapper. However, I can't totally recommend it for the following reasons.
1) It is quite restrictive - only wanting you to use Elive "approved" packages
2) Loss of control over my function keys - particularly brightness.
3) Not free
So - I dumped it - and am now using Lubuntu 10.10. Tested out the Live version and the wifi set up immediately - just needed my WPA password - no problems so far and my brightness keys worked too - so I installed it for a fuller test - and it's free
The browser is Chromium and works fine for me - YouTube videos work - sound and brightness fn keys work - usb2 portable hard drive recognised - Gnome - mplayer plays my dvd iso files straight away. What more do I need:)
Still much to learn - but if you have this netbook - Lubuntu 10.10 is definitely worth a look.