LAPTOP Magazine has published the first review of the ASUS Eee PC 701. Hit the link and find out why they say "Pound for pound, the best value-priced notebook on the planet."

No, the Eee PC doesn't do iTunes, but the preloaded Media Player and decent-sounding speakers get the job done. The device played MP3s and WMAs stored on a memory card while we surfed the Web, and the built-in mic performed admirably when making Skype calls. The Eee PC also did a nice job handling MPEG-4 videos captured by a 720p Sanyo Xacti camcorder and stored on an SD Card; the video looked surprisingly smooth on the seven-inch display. The Photo Manager took its sweet time loading large image files, however. Overall, the Media Player app looks positively crude compared to Windows Media Center and Apple's Front Row, so a makeover is certainly in order.

Getting online with the Eee PC 701 via Wi-Fi was pretty painless; once you set up a profile and enter the encryption key, the notebook will automatically connect to that network the next time you boot up. Although surfing wasn't quite as zippy as it is on our ThinkPad, it was still plenty fast. The device had no problems handling Web 2.0 sites powered by Ajax technology (like Netvibes) or Flash (YouTube). We encountered a screen-resolution issue with the new Yahoo Mail, but we still got it to work.

Overall performance was pretty snappy, even though this machine uses a Celeron processor. Most apps loaded quickly, and the 512MB of RAM is more than sufficient for an operating system with such little overhead. A mere 4GB of storage space tells you that the Eee PC isn't going to be your primary digital media vault out of the box, but you can easily augment that capacity with an external drive. Plus, that 4GB solid state drive can withstand being dropped by Junior.

Speaking of external devices, the Eee PC did an excellent job recognizing all sorts of peripherals, from a Kingston USB drive to a USB dongle for a Logitech wireless mouse. When we plugged in a Casio Exilim camera, the Eee PC asked us if we wanted to open the images in the File Manager or Photo Manager. Not surprisingly, the device wouldn't load music from our iPhone, but the Eee PC did charge it.

Eee PC owners will be pleasantly surprised with how well this tiny machine can double as a desktop replacement. We connected the device to a 20-inch ViewSonic monitor and used the built-in utility to scale the resolution up to 1024 x 768 pixels, and the resulting picture was nice and sharp. The Eee PC also instantly recognized a full-sized Dell USB keyboard and a wired Logitech USB mouse.

This notebook lasted the rated 3.5 hours of battery life on our tests. That's not nearly as good as the five-plus hours of endurance offered by the best ultraportable notebooks. Those machines tend to cost $2,000, however. Bonus: The Eee PC's power adapter is even smaller than what most notebooks in this weight class ship with; it's not much bigger than a cell phone charger.