Hello and Welcome to LinuxQuestions,
The best version of Linux is the one you stick with after trying some of them. There are several distros out there specifically developed for notebooks, Ubuntu has(d) a netbook remix, the 11.04 version install very nicely on them (installed twice on different notebooks for friends without any problems, one was an Acer, the other one Fujitsu), there's Peppermint
which is very nice and fast. Those are only a couple I've tried out myself. Have a look at the search page on DistroWatch.com
. A bit further down the page you can select Netbook under Distribution Category and then click on the Query button further down. That will give you a list with 20+ distros suitable for netbooks.
Download some of them, install them on an USB stick if you don't have an external CD/DVD reader and try them out to see if all of your hardware gets detected out of the box and if you like the desktop environment.
In order to install them from image (ISO) to a USB drive have a look at Unetbootin
Have fun with Linux.