Yep, I installed Windows 7 Ultimate on my little, 2 year old netbook and boy, it is running it with no problems at all. After the (nlited) install, I disabled the page file; moved the temp contents to the RAM disk to free up ~1GB space and now I have 1.8GB free after the installation of Firefox and Foxit reader.
I got the nlited version from a torr3nt website 🙂
I installed it via flash drive using wintoflash utility (google for that. it is free).