Ripster: You got the "Intel(R) Atom(TM) N475 (1.83GHz) + Broadcom(R) Crystal HD Video accelerator + Intel(R) Graphics 3150 [add $40.00]" option, right?
In my experience, while a single-core Atom plays can back standard-definition video quite well in VLC, you can't get 1080p playback from a single-core Atom CPU without any video accelerator chip. The CPU is just not powerful enough. Even dual-core Atom can have problems with 1080p on its own.
If you plan to do streaming from any service that is based on Adobe Flash, then you need dual-core and/or accelerator even more, because Adobe's video subsystem is slow.
Adobe Air is even worse -- it lacks proper hardware support, so it can not even show DVD-resolution content properly even on a dual-core Atom.