netbooks don't have DVD drives, so you can't watch DVDs on them. If that's critical, you need a notebook with a DVD drive.
Also netbooks don't have great video performance, but should watch basic movies fine. Netbooks also have smaller screens, so watching a movie is not as nice as on a larger screen.
Other than that a netbook should suit you fine. 1GB ram, 250gb hard drive. Would recommend Windows XP svc pack 3, since Windows 7 starter edition is terribly crippled.
Overall I'd say if it's going to be your one and only portable laptop, then go for a more powerful notebook, like the Ideapad U450 which feels like a netbook but has an optical drive, and larger 13" screen.