So when you buy a netbook, make sure it is not GMA3150 inside. Both older (such as GMA500, N270) and newer (such as Z670, N2600) netbook chips can do HD; only GMA3150 (N450 series) cannot, Intel stupidly removed this critical feature from that generation of Atom.
First, you need to find and install "CLVDPack080410.rar". You only need to select "CyberLink Video Decoder (PDVD10)".
Second, you need to install Media Player Classic - Home Cinema. Disable its built-in H.264 filters. Then MPC-HC will use above CyerLink codec to play 1080p HD with GPU's DVXA hard decoder. CPU usage is very low, only 15% or so. Playback is as smooth as silk.
If you need to see closed captions, you need to find and install cccp.ax (Core CC Parser) filter. Then add it to MPC-HC as an external filter. If you play HD files over LAN or WiFI and find it jerky, you need to install NeSplitter.ax (Nero Splitter).
BTW, all Android and iOS tablets still cannot play high-profile 1080p files, such as Blu-ray and those out of GF2 etc. cameras. It is a pity that people buy $500 tablets that cannot do what a $200 netbook can.
See this youtube as a proof. The netbook in this video is a 5" (yes 5 inches) UMID M1 with an Intel ATOM GMA500 inside, running Windows XP: