Sony today launched a laptop small enough to fit in a jacket's pocket or a ladies purse. 8" screen an and barely 1.4lbs. The specs look excellent

The consumer model of type P (VGN-P80H/W, VGN-P70H/R, G, W) features 8-inch ultra-wide monitor (1600x768 resolution), Intel Atom Z520 CPU as well as 60G byte hard disk and on-board 2G RAM. The operation system is Windows Vista Home Basic. It is also equipped with IEEE802.11b/g/n, NTT DoCoMo's FOMA High Speed WAN connection,and Bluetooth. GPS function is available on VGN-P80H/W and corporate models. The normal battery lasts 4.5 hours. Source

They could've put in a bigger hard drive though. Acer also has one similar with 9" screen apparently with 160Gb hard drive caled the Acer Aspire One.
Even the HP Mini I was working with a few weeks back had a 120 Gb hardrive. An them both about 1/2 the price. The Sony is priced @ $900 while the Acer an HP are both around $500. Have to compare specs to see if it would be worth it to spend double the money on a Sony.