I have the 4G Surf (no webcam), I upgraded the RAM to 2GB, and installed ubuntu Linux on it. I am using it as my full time work/home laptop to replace a boat anchor 17 inch Toshiba laptop. My work agreed to give me two LCD screens (a 22" and a 17", one for each office) in return for the laptop. I love it, and don't really notice a difference (the laptop was a core duo 1.8). In both cases I use an external keyboard and mouse, so nothing changed there, and the screens are now bigger, so that's a bonus. The speed difference is barely noticable. I use an 8GB SHDC card for file storage. My boss has one as well and he installed VirtualBox and installed XP inside that, and it works fine, so that is an option as well.
Oh, I have also overclocked mine to the rated 900 MHz as well, no issues so far, knock wood.
Next project is internal bluetooth!