Intel has just demonstrated their prototype for their new MID (Mobile Internet Device) product which is similar to Ariya's N800 tablet. This device will have 4-6 inch of display, 256MB to 512MB of RAM, and Linux filesystems with footprints of about 500MB. Screen resolutions will be 800x480 or 1024x600. The distribution is based on RedFlag MIDinux which uses 2.6.20 kernel.
Below are some screenshots:
The MID device
User Interface of the MID
Software Architect of the device
More detail information can be seen on LinuxDevices, UMPCPortal, and ZDNet Australia