i personally would buy this:

http://www.ebay.com/itm/HP-Compaq-Mini-110c-1040DX-Netbook-Intel-Atom-1GB-16GB-SSD-Parts-Repair-/200784627850?pt=Laptops_Nov05&hash=item2ebfb2488a#ht_500wt_1170

i know 10.5.8 installs nicely on that hardware (sleep mode works too), what ever the issue is with it i am sure you can figure out.

maybe you will win it for 99 cents

ideneb would be the distribution you would be looking for,