I gotta admit I had a totally different experience when installing 9.04 onto an Asus 1000HEB I was quite pleased with the video performance for things like Firefox and Evolution and the like. I just recently got done giving this machine to my dad for his birthday and he felt it was running very well.
I will admit that when I installed the netbook remix package that that had some SERIOUS video regression issues and the gnome bars were gone when the translucent netbook menu was up and it was just horrible. Being that I wanted to keep things as similar to their full sized machine as possible I left it with a default 9.04 install. Even though their desktop is running 8.04 I still considered that "similar enough".
But anyway everything right through and including flash video and AVI video performance was good enough that I almost didn't want to give dad the computer! I also showed the little 1000HEB to a customer in the bar and they were so impressed that I've recently purchased a 1000HE and slot load slim line DVD burner for them that should be arriving this Friday for me to load Linux onto for them. This will be their first computer ever with Linux and they were quite amazed at how well it performed from video performance to support for their Verizon Wireless Internet access USB dongle right out of the box.
Honestly until 9.04 I've had more problems with my ATI hardware than I've ever had with Intel hardware. Now with 9.04 I've experienced something a bit more equal. On my main laptop Dell D610 I've never been able to play more than one video at a time in mplayer via XV in Compiz and now thats working quite well with the open source driver and it still performs admirably with flash. Which means that the little bouncing blue dot on Google finance isn't so slow it makes me want to cry. Its actually quite responsive... And yes I've tested it on flash video too and that works quite good.
I've had my system just poof up and log me out and take me back to the login screen 3 times now since I've installed it which I'm not sure what that is but thats about the worst of the 9.04 woes that I've seen...
One problem is the intel kernel module. The default one disables some features which would work. As u provides test kernel packages from stock sources, i would fetch one of those newer ones. I have got problems with 2.6.30 + budget-av dvb-c card, but on a pure system it worked.