The AtomicPup-XIX works like a charm on it . I also tried UpupBB , Xenial and LxPupSc . I had to use the xorgwizard on Xenial . The best video experience I had it with UPupBB using mpv player - but tearing was always present in fullscreen.
Some years ago I gave an Acer Aspire One D270 with the same CPU and graphic card , to my daughter . I upgraded the RAM to 4Gb but only 3Gb were recognized by the system . This netbook works in 64bit so my daughter is using Fatdog64-630 for school even now without problems . Videos are best seen in fullscreen when downsized to 512:288 and 700kb/s , and every now and then tearing occurs .
Going back to my own Asus 1025C netbook - I searched and found a forum with a link to a moded BIOS to get it working in 64bit . It works , I also put a 4Gb stick of RAM in it (all 4Gb recognized by the system) and now I tried Fatdog64-710 and Fatdog64-721 with the same 512:288 and 700kb/s videos .
Using mpv 0.27 player - which I compiled it in FD710 , but also works in FD721 : still got tearing ( though rarely ) in fullscreen in FD710 . But the good news is that in FD721 this mpv player works like a charm in fullscreen .
Moreover : using the HDMI port I connected the netbook - FD721 - to a FullHD monitor . mpv player is able to play those videos well with this hardware at 1920:1080
It's no use to get VLC to play without tearing in fullscreen even on the native 1024:600 screen. Not on 32bit Pups and not in Fatdog64 .When not in fullscreen , I noticed in Conky a double CPU load using VLC than using mpv player .
On today's computers I would hardly notice or care , but it's good to know a good and light alternative to VLC , specially on high resolutions .