I just had a lengthy chat session with Dell tech support over this same issue. My 7 year old son got a Dell mini for Christmas and all he uses it for is playing games and watching videos (transferred from our TiVo.) I also stored a bunch of photos of his birthday party, Christmas morning and his dog on it for him. In other words, we haven't installed any new hardware or software on it, so there is no reason it should have the blue screen of death.
But I digress, sorry. They are sending me a new hard drive (which I'm supposed to install myself...) Also, since they don't support data recovery, they told me to contact 'any local technician' to retrieve all the photos and videos stored on it. *sigh*
They also tried to get me to purchase...