If adobe photoshop CS5 link to requirements page says that it requires 1024x768 display (1280x800 recommended), will it run on a computer with Resolution 1024 x 600 at all? Will it be the case of an aesthetic hindrance or it won't run properly (severe problems like tools not being visible, crashes etc)? I would like to run it on a netbook of 10.1inch such as this one.
Due to the differing resolution being the vertical value (1024 is the width of the screen), the things that may not appear would be the status bar at the bottom of the application.
Generally, application positions are plotted from the upper left corner. In this case this means the application is looking for an extra 168 pixels on the bottom of the screen (768 - 600), but width should be just fine (1024).
So you'll probably see your toolbars and menus just fine, unless you happen to keep those toolbars and menus on the bottom of the screen.
You will be able to install, but your the program will go off the screen. (Tools won't be visible.)
I might consider reccomending that you use an external monitor (you may need an external graphics card also) or jsut using another computer.
See this fourm for more info.