I see there are known problems with Netflix and this CPU. It is a flaw in the Netflix client however. I can assure you, if the 700mhz ARM based Raspberry Pi can handle it, this CPU can. The E-350 has better benchmarks than some older Core 2 Duo's [cpubenchmark.net]
Netflix needs to figure this one out... But I am glad you pointed this out. That kills my hopes of an HTPC based on this... Now I am thinking about building an x86 router with this instead... If only I could find a case <$20
It has nothing to do with the processor. On a computer netflix does not enable gpu decode for hd while on your phone or 3ds or roku it does. What is really sad is it used to be enabled and you will find old reviews for the acer aspire revo which was a single core atom paired with the ion gpu and in those reviews netlifx works great. Starting with silverlight 4 I believe it was disabled and now it is fully cpu dependent.
I would recommend dual core sb for a low power htpc that can do netflix hd