Yeah believe it or not there is such a thing, the Eee PC by ASUS. Though it was originally set to sell for $199.00 only, this laptop is a steal as compared to its high end counterparts ( when it comes to size and weight that is) like Sony Vaio which sells for at least $2k. Dont expect too much from this laptop though since it only has a 2gb storage ( the higher end version sells at $400 and has 8gb), you can't install photoshop but surely you can do basic stuff like surf the net. This runs on Xandros while the new version will have Windows XP preinstalled.
Here's a more detailed review...
http://www.notebookreview.com/default.asp?newsID=4055