The current generation of S12 with the ION graphics chipset has been discontinued, with all remaining inventory now in the Lenovo Outlet Store for $399. I’ve been quite happy with mine. The ION gives it decent performance for HD video and light gaming, and it has a full-sized keyboard and bright, crisp screen with decent resolution.
[Update: they also have hundreds of brand-new power supplies for $16. For that price, I can have one at home, one at the office, and one in the trunk of the car, and never carry one around. They also have a hundred or so of the 10-inch netbooks in a major scratch-and-dent sale ($220), and some refurbished 10-inch tablet netbooks]