Still, you can get a barebones system with an AMD or even Intel Core-something CPU, or even a full-on notebook, for about what you'd drop on a netbook, and I have never seen a netbook which came with a UPS (unless you mean the installed battery intended for cordless ops, I guess?). Full-size gear is cheaper, faster, and larger-capacity than netbook drives, too. Could go Giga's route with one of the Atom-powered SFF desktops, maybe - his sounds like a new toy for non-heavy-duty use that might meet your needs, and that seems like a heckuva deal.
Regarding barebones systems:
I haven't seen one yet that will come in at less than $250 after you add CPU, Memory, HDD, etc. Plus, they are larger and noisier, both of which are more important than capability. The Atom-powered SFF desktops would work, but the benefit of the netbook is the monitor and keyboard, which make hands on work easier (box needs to be headless in production, but it's a PITA to drag that out when hands-on work is to be performed).
And yes, I meant the internal battery as UPS. :)
If you shop around, you can find deals on older Netbooks. I've seen prices from the high $100s to mid $200s. Performance isn't an issue as this task was being handled by a box with a 450mhz processor and less than a gig of ram. Anything short of a TI calculator will be an upgrade. It just needs to run SSH and IPtables.
My biggest concern with the netbook was funky hardware that might take a special, neutered distro to run.
Chris