Best cheap laptop/tablet for under $350

ASUS Eee Pad Transformer TF101-A1

With a slim, lightweight design and a 10.1-inch WSVGA IPS capacitive display made from durable and scratch-resistant glass that is viewable at angles up to 178Â°, the versatile Eee Pad Transformer is the perfect tablet for anyone who want to enjoy... read more...

At this price point I would personally recommend a tablet over a laptop. Reason is, you can get a great tablet for around $350, but you can only get a decent laptop at that price.
If you can extend your budget just a little but you should pick up an Eee Pad Transformer. These are awesome tablets that are competitive with iPads...in fact many people would even say they are better than iPad.
Eee Pad is quite powerful and capable of so much, from internet browsing to word processing to games (and a growing Android app store), and it uses Android 3.2 Honeycomb - an excellent OS.
Also, if you save up a little more cash you can eventually buy the keyboard attachment, essentially making it a laptop. This way you ge the best of both worlds.

✔ Highest voted answer

Reply · Send thanks · posted 90 days ago · 1 person agrees

Lenovo G570 43349LU 15.6-Inch Laptop (Black Textured)

The Lenovo® G570 notebook is an affordable notebook that doesn’t compromise on the basics. It delivers outstanding performance for everyday tasks, thanks to the Intel® Pentium® processor, plenty of memory and spacious storage for images, music and... read more...

Ignore the price for the above; at the moment you can get that Lenovo G570 from Office Depot for $329.99, free shipping, and they throw in a $15 pre-paid VISA card too, just for kicks. Here's a thread with details on slickdeals.net:

http://slickdeals.net/permadeal/69396/office-depot...

Now, a word on Tablet versus Laptop: It all depends on what your usage habits will be. Are you just planning on using it for consumption of media (web browsing, watching videos, playing light games, reading e-books, etc.)? If so, then get the tablet; you'll probably be happier with it in that case. And the Eee Pad Transformer James recommended is a good one.

If you're planning on creating content on it (typing papers / long emails, editing photos, etc... things that require a lot of input from you), then definitely go with a laptop. The G570 I linked is a good deal; it's a Sandy Bridge based Pentium chip, so it's inline with the performance of the Core i3 Sandy Bridge chips, it has a more than adequate amount of RAM, and decent storage space on the hard drive. Lenovo generally has good build quality as well.