I've been unplugged ( on the road ) all this week. I was hoping to see a response when I got back. Maybe more info might help. I am hoping to get this resolved before I leave again Monday.
As mentioned in the OP I have tried it on battery and AC. The CPU speed does not change. I did notice that when on battery and I click on the battery icon, the PC is forever estimating the amount of charge left, although the green bars in the icon count down and change colour as the battery discharges.
When you say
Try setting power mode to performance
are you referring to Power Management? Can you be more specific please?
As far as I know this netbook does not allow the option of giving more ram to video manually. I believe it can use up to 256 Meg dynamically which is not a problem as I have 2 Gig of ram installed.
As for your last point, this netbook came with Xandros installed and videos played smoothly (youtube, TV shows, etc) at 630 MHz but it was getting old and more crashes were happening. Hense the search for a replacement OS.
Can I change the CPU speed manually from the command line? If so I can write a little script that will let me toggle it back and forth, thereby doing my effort in conserving energy and use it only when viewing video.