Linux just not working for this netbook

Try fedora, opensuse, Mandriva and PCLinuxOS.

By only trying Ubuntu and mint you have very loosely only tried Debian. As Ubuntu is based off Debian and Mint is based off Ubuntu/Debian depending on the version.
 
I'm guessing this netbook has no optical drive? If not, and it's possible, I reckon installing ubuntu 10.10 from an optical drive will work. I have a small homeserver using an asus atom m-itx board and it always fails with similiar results to you if I try and install via usb memory stick or network. Via usb cd or sata cd it works fine. Borrow, beg or steal (don't actually steal anything it's a phrase) a usb cd drive and see how you get on maybe?
 
It is worth persevering to get the performance and reliability that a Linux distro would bring to the netbook. I have experimented recently with LXDE distros like Lubuntu and PCLinuxOS LXDE edition. They are the best match for a slow laptop or netbook as the memory footprint of the GUI is smaller and they have less to load into RAM when booting. Lubuntu also uses Chromium as the default web browser and has great WiFi support. The crashing is most likely to do with the GPU, you will have to experiment with different distros until you find one that works well with that model. If it is a GMA500 you will be very limited on what distros will work as support is thin on the ground...
 
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