After further investigation, I have discovered that the webcam's USB Composite Device controller is responsible for the CPU's lack of Deep Sleep. Take a look at the below graphs:
Graph Shows-> Non-existant C3/Deep Sleep state when "USB Composite Device" is enabled

Graph Shows-> "Active" Battery Saving C3/Deep Sleep state when "USB Composite Device" is disabled

What you need to do in order to 'unlock' the processor's C3/Deep Sleep state:
1) Install Microsoft's KB918005 "Battery Drain Patch" for XP SP2. Deep Sleep will not be possible without this update.
For the I can neither confirm nor deny eeePC XP users ;) I have provided a direct link to the update:
http://download.micr...-v4-x86-ENU.exe
2) Disable the "USB Composite Device" in device manager.

Whenever you need to use the webcam you'll have to re-enable the "USB Composite Device". If time permits, I (or someone else :D) can make a tray utility that will allow you to toggle the device/webcam off and on.
I have not tested to see how significant the battery life gains are, but I have no doubt that we will get a few more minutes out of our eeePC battery :)











