I've just bought one of these and am stuck at the same point too...

I've tried the Hazard Snow Leopard disc, Kalyway 10.5.2 (Which I successfully installed on my Aspire One 150) and the Netbook Installer with a Retail Leopard - that didn't boot at all.

I first thought the problem was the Win7 partitions on the disc, so I deleted them. Then I took the disk out and put into an external SATA cradle connected to my MBP and formatted it under DiskUtility, 10.6.2.

I've booted the installers -s and run fsck

I'm still getting one of two errors...

localhost mDNSResponder[58]: Couldn't read user-specified local hostname; using default bDevice-0000000000.localb instead

Or the "root filesystem is read-only;"

I'm going to keep playing with it, but the panic is starting to set in 'cos I've bought this for the missus for Christmas!

Any ideas??