I would echo the advice to go for 12.04 using one of the lighter variants e.g 
Lubuntu or Xubuntu.
As a tip based on my own experience, when you advertise the netbooks don't 
specify which OS they are running. Anything other than Windows is likely to put 
some people off following it up, but if they get as far as making an initial 
enquiry you will have an opportunity to "sell" the concept of a non-Windows OS.
Regards
Nige                                      
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