Kind of same boat as you...the cheapest netbooks with Windows right now have got to be the old Dells which you can find at outlet.dell.com . An extra bonus (only with the Dell Mini 10v) is that you can hackintosh if you want. Price range varies with specs from $199 - $269.
If you want a new netbook though, the Asus 1001P is a good choice. 8-10 hour battery life, Windows 7 Starter.
The best thing though is to go to a local electronics shop and try them out for yourselves. Just my 2 cents.