Recommend an OS for a netbook

And the netbook is an eeePC 1000H. It's the first gen Atom netbook, screen resolution of 1024 x 600. Although Windows 7 kinda runs "okay," it still slows down here and there, and the screen resolution is not helping. I tried Ubuntu, surprisingly it runs worse than Windows imo, where programs literally are stalling (their windows get darkened) here and there.

I feel like Windows 2000 would scream on this :D, but obviously it's not wise to run, even if I could (no drivers, no updates). Now I installed crunchbang Linux (loved the name. :D), and it seems to run okay, but the interface is not really user friendly.

Any other recommendations? I want something that gives me better experience than Windows 7.