First Look: ASUS U2E goes tiny, without the catches

Update: The Lenovo X300 includes a slimline DVD burner. This story has been updated to clarify this.

All the hype might be going to the Apple Air, Lenovo X300 and EeePc, but we think this pint-size marvel from Asus should also be on your shortlist.

The reason? ASUS has cleverly combined the best of the above laptops - it's tiny, and includes includes like internal DVD which some others such as the EeePC leave out (the Lenovo X300 also includes internal DVD). The performance is decent, and most of all, the price is competitive.

The U2E's big drawcard is the built-in DVD and 120GB hard drive - immediately leaving the EeePC in the dust. Even better, it's all in a tiny 1.25Kg package that's on par with the so-sexy-it-hurts MacBook Air and Lenovo X300.

Usually there's a big weight tradeoff when adding internal DVD (Apple's MacBook Pro 13.3inch weighs 2.27Kg), but not here. It's light and small enough to carry it under your arm with a notepad. Oh, and it's also in leather.

The U2E is also reasonably priced. The 120GB model starts at $2,899, which sounds expensive but actually sits somewhere in the middle of premium ultraportables. The Air starts at $2,499, while Lenovo's X300 is a pricey $3,999, though that's with a 64GB solid state drive.

Specs include Intel Core 2 Duo U7500, 2GB RAM (upgradeable to 4GB), Intel GMA X3100, 803.11a/g/n, 11.1inch backlit screen, 3 USB ports and up to 120GB HDD (or 32GB SSD).

We were pleasantly surprised with the performance, considering this is a low voltage processor. Vista was responsive, even in power saver mode, which is more than we can say for other ultraportables, though we should note our test model came with 3GB RAM.

The FUD-factor is raising its head in relation to solid state drives (SSD) right now, including concerns over price and performance. We're a fan of SSD for the quick start up and battery life advantages - though we're hanging out for bigger capacities. The U2E comes with a 32GB SSD option, but the good news is ASUS tells us a 64GB option is on the way around May or June.

About the only note of concern is the keyboard. The keyboard is smaller than we're used to with 13.3inch units, and it takes a bit of getting used to.

We're big fans of the EeePC, but there are times when the lack of hard drive space, Windows compatibility and other trimmings are a pain. If you're after more, in a tiny package, this may be your portable.