The Chinese company Skytone, mostly known for making Skype phones and children's computers, has started offering the Alpha-680 Google Android netbook. It comes with a 7" display (800x480), an ARM11 533mhz processor, 128MB of DDR2 RAM (256MB optional), 1GB of NAND flash memory (up to 4GB possible), and various connection options such as WiFi, ethernet, 3G, and more. Perhaps the coolest feature is that you can rotate the screen in a tablet-PC-like fashion, and that it comes with what look like gaming buttons. All this goes for USD 100-200.
We also have some video material of the i-Buddie Android netbook, which is an Atom-based device, thanks to the German website NetbookNews.de.
The demonstration isn't particularly impressive, mostly because we see like 3 crash dialogs within a minute of use; also, it seems as if there's no mouse support just yet. However, this is just a prototype, so you can't expect too much.
What is clear, however, is that lots of people are hard at work on getting Android on netbooks.