O2 UK has released details on their ultra-small XDA II Mini PDA smartphone. The costly $1,200 device is actually the size of a deck of playing cards, uses a 2.8-inch LCD screen with 240 x 320 resolution, and runs on Microsoft Pocket PC.
In the guts is a 416MHz Intel processor and 128 MB of memory. Wi-Fi was left out of the design, I suspect because of the size of current Wi-Fi modules, but you can add one in via the SD Slot. Images and video can be captured on the 1.3-megapixel camera and stored on the internal memory or the free 256MB SD card O2 that ships with the XDA II Mini from O2.