There is an ongoing discussion going over at MyHPMini forums regarding optimizing your HP Mini 1000. The tips and tricks are dividing into 2 sections: one regarding optimizing the speed and other regarding optimizing the storage.
Speed
2 GB RAM upgrade (PC2-4200 one stick) from Corsair or Centon (tiger direct). It gives you more memory, so more memory demanding programs will run well. Some examples of programs that I’ve found that run better are Office 2007, Picassa, and Quicken
RAM caching or RAMdisk: Some of the “lagginess” you might be noticing with web browsers and other programs can be attributed to slower SSD/hard drive speeds. By putting your internet cache on your RAM (RAMCache), you lose that lagginess
Read ApoTheTech’s RAMdisk article here
Storage Capacity
Get a big SDHC card like 16 GB SDHC card (currently selling for around $30 on various online stores)
Move “My Documents” to SDHC card – see this link for more information on how to do that
Move windows XP temporary files directory to SDHC card
On-line file storage: There are many free on-line file storage services out there. Here are the ones I know about: box.net ( 1 GB free ), adrive.com (50 GB free, sync software with paid), Microsoft Skydrive (5 GB free, no desktop sync option), and http://www.mesh.com (5 GB free plus synchronization software).