It's amazing the little tidbits you can pick up when you're in close proximity to Microsoft headquarters. While I was staying in Redmond, Washington briefly during the last week of December, a little birdie began to tell me about a Windows SideShow device that is supposedly in development. If you don't know much about SideShow (I didn't, until a couple of weeks ago), there's an MSDN page that offers some excellent illustrations. Anyway, the device in question supposedly is a pocketable gadget, to be manufactured by Dell (with Windows branding, I assume). It will have built-in memory and can act as an MP3 player; perhaps as a portable video player as well? And I seem to recall something about built-in wireless capability, perhaps. The image that popped into my head as this mystery device was being described was the iRiver Clix (pictured here). Of course, this is all speculation, but if such a device is announced at CES this year, you can bet it'll pop up here.
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