Sort of like a PSP without the games:
http://www.sonystyle.com/webapp/wcs/stores/servlet/ProductDisplay?catalogId=10551&storeId=10151&langId=-1&productId=8198552921665301420
It plays video at 800x480 pixels, has built in speakers, can do Skype (just hold it to your ear like a regular cell phone).
The price is $299, but if you apply for a Sony credit card and spend $299, you get $100 credit which brings the price down to $199.
I just ordered one. I'll post here what I think of it when I get it.