1.66Ghz Atom and 1GB RAM, and its "not going to be fast online"... what a load of shit people really do speak. It has XP on it, im currently running a 1Ghz 100FSB Coppermine with 512MB RAM with XP SP3 when im not using the lappy and its 100% fine for everyday tasks and even multitasking, just don't even CS3 runs okay on it, it just takes a little longer to load than a more modern PC. You can perform some very simple optimization tweaks to improve speed no end.
The Atom however, "wont" really be suitable for HD unless its dual core, however I am not there would be no benefit on such a small small screen so unless you are going to link to another screen, this wont matter. It probably wont have a DVD drive either, but check this as it may have. Not a problem for DivX's but not the best idea if you were planning to run DVD's.
It will be fine for your needs, as to whether its a good deal or not, probably okay because its a Vaio and they command higher pricing than other brands, but it depends what its worth to you.