I too have started looking at this possibility.
However, I do have some word processing work that I require. If I can do my word processing off of my Memory Sticks, with a netbook, then I will do it shortly.
Look at portableapps.com. I have an acer aspire one, which is a netbook. Portable apps provide a complete open office, browser, e-mail client and much more that can be run from any external device (thumb drive, SDHC etc.).
I use an 8 gig SDHC chip which I move from netbook to notebook as the situation requires. This provides me with a sort of movable software module that contains all my personal work, most of my application needs and a lot of storage as well.
I even have an truecrypt encrypted section for those things which require secure storage.
I have been doing this for several years with no problems.
Nomad