@xterm and rahmu, yup it is not working in both terminal and in X and the boot loader custom prompt.
Apparently. See, Ubuntu messed up your netbook.
So much for running on any hardware!
lol I have been using Ubuntu on this netbook from the day I bought it (around 7 months ago) and I didn't get any problems.
Most probably as Jad is saying it is a hardware problem, but I am still not sure what caused this. Anyways I will take it back to where I bought it from in the coming days and see what they can do for me.