[MrB (Simon)]

Another option is the HP Pavilion dm-1.... I consider it the only option in this size class
It has 3x USB 2.0 ports, 1x HDMI out, 1x VGA out, Bluetooth + WiFi, Beats Audio(sounds surprisingly good for it's size).
It has a 11.6" screen where the larger Eeepc's have 12.1" but I couldn't really notice the difference side-by-side instore.

The dm-1's CPU(APU) is an AMD E-450(2Core 1.65GHz) with Radeon HD6320 gfx which plays HD video's fine.
It is better than the Atom based stuff, tho it sacrifices some of the battery life.
The 12" Eee's claim 8-12 hours battery. With the dm-1 I get between 6-8 hours battery life depending on what I'm doing.

It also comes with 64bit Windows 7 Home Premium(SP1) instead of the dodgy Windows Starter that all the other netbooks size machines come with.
The screen(11.6") is waaay better (I compared side-by-side with all the Eee's in store) and the keyboard is so nice(and silent!) I almost forget I'm typing on a 12" netbook.
Unlike the new Eee's, the dm-1's RAM can be user-upgraded, it comes with 2GB but you can upgrade to 2x 4GB SODIMM's for 8GB total.
Windows Experience scores: (yes I know WE isn't great... but it is atleast easy to compare)
Overall: 3.9
Processor: 3.9
RAM: 5.5 (2GB)
2D Graphics: 4.6
3D Graphics: 5.9(!)
Hard Disk: 5.9

CPU benchmarks: (Passmark)
Atom N570 1.66: 639 (old Eee's)
Atom N2600 1.6: 590 (current budget Eee's)
Atom N2800 1.83: 723 (current Eee's)
E-450 1.65: 742 (HP dm-1)
*E2-1800: 793 (new model dm-1, see below)

I upgraded the RAM about a week ago to 8GB (2x 4GB Kingston kit) for about $50 (from MSY)

I bought the dm-1 from JBhifi for $370 just over a month ago I think, about a week later it was $358, then recently it was $318.
This drop in price is apparently due to the newer model soon being released with the new AMD Brazos 2.0 processors – the E1-1200 and E2-1800, see above for the Passmark score for these.

Note that the Toshiba 550D mentioned in other posts is a bit wimpy... It has an AMD C50 cpu which gets a low Passmark score of 449 and only comes with 1GB ram as standard.
The Samsung NC series Netbooks have Intel Atoms (see above benchmarks), also only come with 1GB ram (max upgrade only 2GB) and have a RRP of 499