I didn't want to go down down that route of having a netbook and have to give it back after two weeks. Because if it's not a hardware problem, I have no problem fixing that.
I was hoping to have it a bit longer. It's an unusual problem with the performance.
I ran chkdsk and fixed 6 -7 errors and the problem still remained.
Why does the screen turn pale/light blue before logging on?
Why does it take so long to do a simple routine task like starting up the netbook and opening the control panel?
A newer question: is, why processes time out after 5 minutes or so like logging on and opening up services.msc.
Just questions I had tried answering after hours of investing my time solve this problem.
Guess it's best to admit defeat and return it.