Nvidia is dropping their wm gpu and are working on a new wm cpu. Over 800mhz with 3D graphics built in. Nvidia reps were demonstrating mockups with windows mobile with a VGA screen. Nvidia chips are to be so low power that battery performance should be no worse than todays 400mhz chips even with advanced 3D acceleration. You can bet Nvidia will make sure that their chips have video drivers. Some devices like gps and media players later this year with phones likely 2009. I sure wish I had one now. A real gaming pda phone. Just give us a decent Dpad. If I can remember the web site I saw this on last night, I will try to post later.
edit:
http://www.pcmag.com/article2/0,2817,2258019,00.asp
Here is the link to the Pcmagazine article. Blueray and 720p HD output (hardware encoded not cpu cycles), HDMI, up to 12megapixel pictures with image stabilization, up to 10 hours of HD video or 100 hours of audio on a single charge from an Iphone sized battery, and only windows mobile support. Just imagine the car entertainment center this thing could power.