I have a different Asus netbook, also 1024x600. This 1005HA has a 945GME chipset, and works without any xorg.conf file at all.
Our Intel driver dates from 2009 (version 2.9.1), and according to intel(4):
Quote:
intel supports the i810, i810-DC100, i810e, i815, i830M, 845G, 852GM,
855GM, 865G, 915G, 915GM, 945G, 945GM, 965G, 965Q, 946GZ, 965GM,
945GME, G33, Q33, Q35, G35, GM45, G45, Q45, G43 and G41 chipsets.
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It looks like yours is unsupported.
You could post your dmesg and your Xorg.0.log, but you may end up being stuck with VESA for now.