Ultra-Mobile PC (UMPC)

At CeBIT, Microsoft, Intel and Samsung announced their commitment to developing a product category called Ultra-Mobile PC, UMPC for short.

Ultra-Mobile PCs are a new class of computer that is optimized for mobility. With a screen size of 7 inches or less, Ultra-Mobile PCs can be slipped into a purse or a small bag for ultimate portability. A touch-screen, a tablet pen, and a D-pad give you a variety of input options while you are on the move. Built-in Bluetooth gives you the option of staying connected wherever you go. Running Windows XP Tablet PC Edition, Ultra-Mobile PCs have the full capabilities of the Windows operating system in the smallest package yet.

See a demo at Channel9 or read about all the features from Microsoft's own site

You should also consider visiting the Origami Project also known as “Microsoft mystery”- there is some really cool stuff there - this could easily be the next generation PC.