When I got my mini 10 (1024x### running XP) I quickly noticed that something was wrong with the video, the scaler was crappy and 720p vidoe was barely playable, I started looking for a fix (new driver for GMA500) but did not find anything.
I decided to install Windows 7 on it after maybe 3 months of use and I just want to tell anyone looking for a better video experience to do the same, the video is now as nice as you would expect from a 21st century PC, it plays 720p videos and the scaler is fixed.
Basically the driver for GMA500 was probably developped for XP and Windows 7 and they never took the time to rewrite it for XP.
Just wanted to share this info with you.
tl;dr: Windows 7 makes the mini 10 better.