i confirm this behavior
i just installed ubuntu on my first generation eeepc (800x480)
what about just adding scrollbars?
as you can't move windows above the screen to reach the bottom buttons this 
would help alot

i think we will see more devices with this screen resolution in the
future (MIDs)

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Install wizard does not fit on 600px vertical resolution
https://bugs.launchpad.net/bugs/324885
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