To the technically minded, the notion of MSI prepping its own Eee PC style sub-notebook may not be as enticing as, say an EFI equipped motherboard, but realistically, I expect the former is the one more likely to be purchased by the majority of people reading this.
The system, which will probably look like a downsized MSI PR210 (pictured), is intended to compete with the Asus Eee PC, currently the only real subnotebook on the market. Unlike the Eee, though, MSI won't be using ‘standard' notebook parts in a smaller chassis, but will instead be using low power components to help improve battery life.
The development, therefore, is slightly stunted while MSI waits for Intel's Diamonville CPU to become available, purportedly at IDF in Shanghai this April. Diamondville was previously rumoured to be making its way into the next OLPC, but obviously won't now that Intel has puled out of the scheme. We can, based on that knowledge, at least guess what kind of processing power and machine price-range the chip is to offer though.
In terms of release dates, we have the word of an anonymous MSI executive who stated that "when Diamondville is ready, our project will be ready" suggesting the chassis design and so forth may already be completed. The same executive pointed to a rough launch estimate of July or August, assuming Diamondville is unveiled when it is expected to be.