I have the same laptop only with a standard hard drive. For whatever reason, I have found linux to be faster than the XP they put on there. Not sure why it is so sluggish compared to linux, but it is.
1. Tried Linux Mint 8. Works and looks beautiful on the hp110. Faster than XP. Everything works.
2. Tried Arch Linux. Very fast. You can cut down the install size a lot going with Arch, but there's a lot of hands on in the install and configuration. If you're not afraid to tinker, it has the reward of an extremely slim and fast linux install. The Arch wiki is very helpful as is their forums.
I'm currently using Gentoo and it works 100% as do the above 2 distros. Linux works well on this netbook. The only issue you might have is, the b43 broadcom driver will not work. You have to use the broadcom-sta binary driver. This is easy to get in Mint, and not too much effort in Arch.
As for UNR, I don't care for it, but you might like it. Keep in mind that you should be capable of running a full distro though. You just might have to keep some of your goodies on a flash drive, or remove unneeded temp and package files on occasion to keep enough free space.