Well, it kinda loves it. To get the internal graphics working on Ubuntu 10.10 (surprisingly even including the OpenGL Compiz desktop effects) you'll need to install the Intel GMA 500 drivers for Ubuntu.
Fortunately, that's as easy as following the steps outlined on this Wiki page: https://wiki.ubuntu.com/HardwareSupportComponentsVideoCardsPoulsbo/#PSB drivers
Or included here for posterity:
sudo add-apt-repository ppa:gma500/ppa && sudo apt-get update && sudo apt-get install poulsbo-driver-2d poulsbo-driver-3d poulsbo-configDone. Native resolution, OpenGL, Compiz desktop effects all working :)
Uh well I didn't dual boot it with XP. I didn't have XP installed on there in fact, it was Windows 7.
I had already merged the disk partitions together that came with the Eee PC because I deemed it unnecessary to have more than one partition on the one physical disk.
However, when you run the Ubuntu installer from within Windows, it should allow you to create a partition for Ubuntu and dual boot it with Windows. I've had more success doing it this way, and I achieved this with my desktop computer successfully a number of months ago.
Alan: My first doubts are about how to install Ubuntu on EeePC 1101HA dual booting with WinXP. The disk is partitioned in a way that I don't feel confortable to change it: /dev/sda1 (windows system); /dev/sda2 (NTFS) aparently free to use; /dev/sda3 (Fat32 system) -> can I use it? It seems a winXP recover partition; /dev/sda4 (EFI FAT-12/16/32) -> where winxp put firmware drivers? How do you installed Ubuntu? what were your partition options (if you dual boot with windows)?