http://news.com.com/Microsoft+dreams...ml?tag=st.prev

"Microsoft on Monday plans to show off pretty much the dream portable
computer--a tiny tablet computer as thin as 10 sheets of paper with a
camera, a battery that lasts all day and a price of about $800.

The only problem is that it's still several years from reality.

Microsoft commissioned the 6-inch-screen prototype, but still doesn't know
exactly when it will be commercially feasible. It will probably come at
least a year or two after the arrival of Longhorn, the new version of
Windows set to ship at the end of next year.

Microsoft said it is starting to see some progress in sales of current
tablets, too, following the release of a new version of the Tablet PC
operating system last year. In the March-ending quarter, the company saw
Tablet PC sales increase 64 percent versus the year earlier. "