While its claim of being the "first" to offer an OS specifically designed for the latest crop of low-cost laptops and UMPCs may be a little dubious, the unfortunately-named Linpus is at least pretty quick to jump on the bandwagon. To that end, the company's just let loose its Linpus Linux Lite OS, which it says will run just fine on laptops like the Eee PC and Cloudbook, or any other system with as little as a 500MHz CPU, 128MB of RAM and 512MB of storage.
Just as importantly, the OS is also apparently designed with low-res 7-inch screens in mind, although as CLUMPC points out, it doesn't go so far as to include support for little things like built-in WiFi out of the box. Still, if you want to give it a shot, you can grab it now in the form of a Live CD direct from Linpus.