Hewlett-Packard unveiled its third-generation netbook this week, the Mini 210 that uses Intel’s Atom processor, has a 10.1-inch screen, and is less than an inch thick.  Not surprising, we’re seeing an emphasis on affordability as well as style and functionality.

HP is including what it calls “the Cloud Drive” – which appears as just another attached device, but the data is actually sent to an online storage site (data can then be dragged and dropped onto the Cloud Drive just like a normal drive).  The idea is that users can access documents, photos and music from the Cloud, without having to store anything locally.  HP will supply 100GB of storage free for three months, after which a service charge will be applied.

The 210 is HD-capable and features HP’s Quickweb technology that allows the unit to boot up in a Linux environment. HP’s Mini 210 will be available starting today with a $299 suggested retail.

HP will also upgrade its business netbooks, ranging from $299-$399. Options include SSD storage, 3G and a touch screen.

And the company introduced a new Tablet PC, the Touchsmart tm2 that uses a reversible 12.1-inch touch screen the company believes will appeal to students who may want to use it for note taking.  It will ship beginning this week (MSRP $899).