Hardware

will not handle win ultimate, not near enough ram. If you want to run win7 ultimate, consider spending the money on a decent system that will run it .

No it doesn't have that ability.

To do anything with Ultimate loaded which is wasting your money you must not involve Multitasking. If you have only 1 Process Open at a Time it may sort of work well enough to use but it's going to be SLOW.

The reason why Windows 7 Starter Sucks so badly is because it doesn't support Multitasking which suites this unit very well because the Hardware involved here doesn't either. :0

You may get better performance with some form of Linux like Android loaded as it has a smaller footprint and lower resource requirement. This may suit the hardware very well where as Windows in any form doesn't.

Col

I Bought a net book last year with similar specs, and also Win 7 Starter. The day i got it I firstly removed the windows and loaded Ubuntu Linux, I have tried i couple of Linux distros since then, but in my opinion Kubuntu is the best version of linux for someone used to Windows 7 or Vista.
1) Its desktop looks just as good ( or in my opinion better then ) Windows 7
2) Easy to Install
3) You can Install MS Office 2007 , and other Microsoft programs through Wine

...gigs of RAM.

The other comments are correct, your netbook doesn't have enough horsepower or RAM to handle Win7U. You would be much happier with WinXP or a light Linux distro. There are a couple of distros geared toward netbooks and other less powerful hardware. Regardless of the OS you choose I would throw a 2GB stick of memory in there. It will run MUCH better. (I would recommend more but most netbooks don't support more than 2GB. If yours does then by all means put in the max it will handle.)