Older ubuntu versions will have problems with the AMD 'A' series CPUs/APUs. Newer versions (11.10, 12.04) should work, you might get some bugs though.
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Originally Posted by mathman48
are there any cheaper alternatives that have HD?
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What do you mean by 'HD'?
If you mean 'AMD GPU intergrated onto the CPU, aka 'APU'' yes, there are cheaper versions. The A4-3400 is about as low as you can get with socketed CPUs, to get something cheaper would mean a E-350. Still a dual-core CPU, though slower than the A4-3400, and has a HD 6310 APU.